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Suppose that Texas Trucking ( TT ) has earnings per share of $ 3 . 6 5 and EBITDA of $ 5 5 million. TT

Suppose that Texas Trucking (TT) has earnings per share of $3.65 and EBITDA of $55
million. TT also has 5 million shares outstanding and debt of $150 million (net of cash). You believe that Oklahoma Logistics and Transport (OLT) is comparable to TT in terms of its underlying business, but OLT has no debt. OLT has a P/E of 13.5 and an enterprise value to EBITDA multiple of 7.5. Based upon the enterprise value to EBITDA ratio, what is the value of a share of Texas Trucking?

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