Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are given the following information: Stockholders' equity as reported on the firms balance sheet = $4.25 billion, price/earnings ratio = 18.5, common shares outstanding

You are given the following information: Stockholders' equity as reported on the firms balance sheet = $4.25 billion, price/earnings ratio = 18.5, common shares outstanding = 210 million, and market/book ratio = 1.6. The firm's market value of total debt is $4 billion, the firm has cash and equivalents totaling $330 million, and the firm's EBITDA equals $3 billion.

What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent.

What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.

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_2

Step: 3

blur-text-image_3

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

Sustainable Finance And Banking

Authors: Marcel Jeucken

1st Edition

1853837660, 978-1853837661

More Books

Students also viewed these Finance questions