You are given the following information: Stockholders’ equity as reported on the firm’s balance sheet = $6.5 billion, pr
Posted: Wed Mar 09, 2022 8:42 am
You are given the following information: Stockholders’ equity as
reported on the firm’s balance sheet = $6.5 billion, price ∕
earnings ratio = 9, common shares outstanding = 180 million, and
market/book ratio = 2.0. The firm’s market value of total debt is
$7 billion, the firm has cash and equivalents totaling $250
million, and the firm’s EBITDA equals $2 billion. What is
the price of a share of the company’s common stock? What is the
firm’s EV/EBITDA?
reported on the firm’s balance sheet = $6.5 billion, price ∕
earnings ratio = 9, common shares outstanding = 180 million, and
market/book ratio = 2.0. The firm’s market value of total debt is
$7 billion, the firm has cash and equivalents totaling $250
million, and the firm’s EBITDA equals $2 billion. What is
the price of a share of the company’s common stock? What is the
firm’s EV/EBITDA?