Your boss asks you to estimate the price per share of a startup company using a comparable approach (i.e., market multiple approach). You must estimate the stock price (on a per share basis) for the startup company using the Industry EV/EBITDA multiple. You have the following information for the startup company and its industry:

Industry:

Industry EV/EBITDA = 8.80

Company:

EBIT = $13.5 million

Depreciation = $2.0 million

Debt = $55.8 million

Cash = $39.8 million

Number of shares outstanding = 1.96 million

• $43.47

• $136.40

• $61.43

• $69.59

• $20.82