After researching the competitors of EJH Enterprises, you determine that most comparable firms have the follow valuation ratios: EJH Enterprises has EPS of $2.00, EBITDA of $300 million, $27 million in cash, $42 millic in debt, and 104 million shares outstanding. What range of prices is consistent with both sets of multiples? + The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $. (Round to two decimal places.) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ (Round to two decimal places.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Comp 1
Comp 2
Comp 3
12
11
12.5
18
20
EV/EBITDA
P/E
19
Comp 4
10
17
Transcribed Image Text:Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Comp 1 Comp 2 Comp 3 12 11 12.5 18 20 EV/EBITDA P/E 19 Comp 4 10 17
←
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following
valuation ratios: EJH Enterprises has EPS of $2.00, EBITDA of $300 million, $27 million in cash, $42 million
in debt, and 104 million shares outstanding. What range of prices is consistent with both sets of multiples?
+
The range of prices will be:
Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $. (Round to two decimal places.)
Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $. (Round to two decimal places.)
Transcribed Image Text:← After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: EJH Enterprises has EPS of $2.00, EBITDA of $300 million, $27 million in cash, $42 million in debt, and 104 million shares outstanding. What range of prices is consistent with both sets of multiples? + The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $. (Round to two decimal places.) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $. (Round to two decimal places.)
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