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Suppose that Texas Trucking (TT) has earnings per share of $4.45 and EBITDA of $65 million. TT also has 10 million shares outstanding and debt

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Suppose that Texas Trucking (TT) has earnings per share of $4.45 and EBITDA of $65 million. TT also has 10 million shares outstanding and debt of $250 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 12.5 and an enterprise value to EBITDA multiple of 5. Based upon the enterprise value to EBITDA ratio, the value of a share of Texas Trucking is closest to: $6.5 $7.5 $5.5 $8.5

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