ock Corp. has a EBITDA of $1,000 and is in an industry where EV/EBITDA multiples are generally 8.0x. Rock has Net Debt of $4,000 and 2,000 shares outstanding, what is an approximate value of Rock Corp's stock price per share? a) $1 b) $2 c) $3 d) $4

ock Corp. has a EBITDA of $1,000 and is in an industry where EV/EBITDA multiples are generally 8.0x. Rock has Net Debt of $4,000 and 2,000 shares outstanding, what is an approximate value of Rock Corp's stock price per share? a) $1 b) $2 c) $3 d) $4

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

Problem 1PS

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Question

Rock Corp. has a EBITDA of $1,000 and is in an industry where EV/EBITDA multiples are generally 8.0x. Rock has Net Debt of $4,000 and 2,000 shares outstanding, what is an approximate value of Rock Corp's stock price per share?

a) $1

b) $2

c) $3

d) $4

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