FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
N1.
Account
Transcribed Image Text:Based on the information in the
table, what is the share price
when the price to book (P/B)
multiple of a comparable
company is 2.5x?
Income Statement Millions
Sales $3,000
EBITDA $2,200
EBIT $1,750
Net Income $1,100
Balance Sheet Millions
Cash and Cash Equivalents $120
Short Term Interest Bearing Debt
$210
Long Term Interest Bearing Debt
$850
BV Equity $1,500
Shares Outstanding in Millions
100
Share Price
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