Question
You are given the following information: Stockholders' equity as reported on the firms balance sheet = $2 billion, price/earnings ratio = 13, common shares outstanding
You are given the following information: Stockholders' equity as reported on the firms balance sheet = $2 billion, price/earnings ratio = 13, common shares outstanding = 180 million, and market/book ratio = 1.5. The firm's market value of total debt is $4 billion, the firm has cash and equivalents totaling $280 million, and the firm's EBITDA equals $1 billion.
1. 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.
2. What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
