Question
You are given the following information: Stockholders' equity as reported on the firms balance sheet = $2.75 billion, price/earnings ratio = 9.5, common shares outstanding
You are given the following information: Stockholders' equity as reported on the firms balance sheet = $2.75 billion, price/earnings ratio = 9.5, common shares outstanding = 190 million, and market/book ratio = 2.5. The firm's market value of total debt is $6 billion, the firm has cash and equivalents totaling $220 million, and the firm's EBITDA equals $1 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started