Suppose that Texas Trucking (TT) has earnings per share of $3.45 and operating income of $45 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 12.5 and an enterprise value to operating income multiple of 7. Based upon the price earnings multiple, the value of a share of Texas Trucking is closest to:

Question 5 options:

	$27.60.
	$24.15.
	$43.13.
	$49.30.