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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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