FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to estimate the stock price of the target company: A comparable company has a EV/EBITDA multiple of 18. The target company

image text in transcribed

Use the following information to estimate the stock price of the target company: A comparable company has a EV/EBITDA multiple of 18. The target company has EBITDA of $237,799, $617,356 in debt and 788,783 fully diluted outstanding shares. The target's stock price is Round the stock price to two decimals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Behavioral Finance And Capital Markets

Behavioral Finance And Capital Markets

Authors: A. Szyszka

5th Edition

1137338741, 9781137338747

More Books

Students also viewed these Finance questions

Question

★★★★★
The data set of spoiled peaches given in DS 6.1.5. Use a statistical software package to obtain sample statistics and boxplots for the following data sets. What do the sample statistics and boxplots...

Answered: 1 week ago

Question

★★★★★
Firm A and B are exactly the same size as are Firm C and Firm D. Firm A acquires for cash 100 percent of the common stock of Firm C. Firm B acquires 100 percent of Firm D by exchanging one share of...

Answered: 1 week ago

Question

★★★★★
Consider an n-server parallel queuing system where customers arrive according to a Poisson process with rate , where the service times are exponential random variables with rate , and where any...

Answered: 1 week ago

Question

★★★★★
Argaiv Towers has outstanding an issue of preferred stock with a par value of $100. It pays an annual dividend equal to 8 percent of par value. If the required return on Argaiv preferred stock is 6...

Answered: 1 week ago

Question

★★★★★
A company is selling a toy at $10 and producing 900 toys. Producing a toy actually costs the company $5.56. Thus the profit is $4.44. Other cost per months are as follows: Labor cost $1,500 Rent...

Answered: 1 week ago

Question

★★★★★
If you were a detective at the Metropolis Police Department and were assigned follow-up investigations of (1) the residential burglary case that was the subject of the solvability factor analysis...

Answered: 1 week ago

Question

★★★★★
2022- Francis 2022- Frank Regular Earnings $75,000.00 $64,000.00 Vacation Pay $800.00 $2000.00 Employer-paid group term life non-cash taxable benefit $450.00 $220.00 Car allowance $530.00 0.00...

Answered: 1 week ago

Question

★★★★★
PORTAGE COLLEGE Diversity Awareness Course Score | Home | Help | Exit Module 2 Post-Test Module 1 Module 2 Module 3 Module 2 Post-Test h As we grow and learn more about diversity we will transition...

Answered: 1 week ago

Question

★★★★★
Markus Ltd., a one-year-old e-marketing company, aspires to have the best risk management processes. However, as the company has only been around for a short period of time, it lacks risk management...

Answered: 1 week ago

Question

★★★★★
Why is there a rule-making process for information contained in financial reports? Select an answer: so outsiders can compare different companies so companies in different industries can have custom...

Answered: 1 week ago

Question

★★★★★
Which level of conflict (discomfort, misunderstanding or tension) is described in the following situations? - a) A manager thinks it is a reasonable expectation that employees turn up for work ten...

Answered: 1 week ago

Question

★★★★★
An immunology clinic is required to have at least one physician who is board certified in infectious diseases. This is a/an: Question 7 options: Process measure Outcome measure Patient experience...

Answered: 1 week ago

Question

★★★★★
Do you believe that most organizations really try to provide employees with job satisfaction? Give examples of what firms do to increase job satisfaction.

Answered: 1 week ago

Question

★★★★★
What is your attitude toward life? Do you agree with the statement, Life sucks, then you die?

Answered: 1 week ago

Question

★★★★★
Is having a positive self-concept really all that important?

Answered: 1 week ago

Previous Question Next Question