The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $ Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $ (Round to two decimal places.) (Round to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 10P
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After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: . EJH Enterprises has EPS of $1.90, EBITDA of $300 million,
$30 million in cash, $40 million in debt, and 102 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.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
EV/EBITDA
P/E
Comp 1
12
Comp 2
11
Comp 3
12.5
19
18
20
Comp 4
10
17
Print
Done
-
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 $1.90, EBITDA of $300 million, $30 million in cash, $40 million in debt, and 102 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.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) EV/EBITDA P/E Comp 1 12 Comp 2 11 Comp 3 12.5 19 18 20 Comp 4 10 17 Print Done -
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