Question
What would be the price per share of a firm using an EV/EBITDA ratio of 12x based on the following? EBIT $200,000 DEPRECIAION & AMORTIZATION
What would be the price per share of a firm using an EV/EBITDA ratio of 12x based on the following?
EBIT $200,000
DEPRECIAION & AMORTIZATION $80,000
FUNDED DEBT $50,000
CASH $50,000
MARKETABLE SECURITIES $50,000
# OF SHARES OUTSTANDING 80,000
Question 1 options:
| $35.00 per share |
| $30.00 per share |
| $40.00 per share |
| None of the above. |
Price to sales ratio is used to price which of the following?
Question 2 options:
| Mature profitable firms |
| High growth firms that are not yet profitable. |
| Exclusively in the real estate industry |
| None of the above |
Price to book value ratios is predicated on :
Question 3 options:
| Being able to liquidate the firms assets at their book value |
| Being able to liquidate the firms assets at their market value. |
| Being never being able to sell the firms assets. |
| None of the above |
When completing the RV section of a deliverable?
Question 4 options:
| It is not necessary to state the source of the financial data |
| Show all calculations and state the source of the financial data. |
| Always use the price to book value ratio |
| None of the above. |
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