Projected Year 1 Net Projected Year 2 Net I Given the information

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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Facts for this question:
Stock price = $25.00
%3D
Diluted Shares = 95.000 million
%3D
Net debt = $900.0 million
%3D
LTM EBIT = $340.0 million
LTM Depreciation and Amortization = $80.0 million
%3D
Projected Year 1 Net Income = $203.0 million
%3D
Projected Year 2 Net Income = $223.3 million
%3D
Given the information above, what is the Projected Year 1 multiple for net income?
Select one:
O a. 16.1x
O b. None of the listed answers
O c. 10.6x
O d. 11.7x
O e. 14.7x
Transcribed Image Text:Facts for this question: Stock price = $25.00 %3D Diluted Shares = 95.000 million %3D Net debt = $900.0 million %3D LTM EBIT = $340.0 million LTM Depreciation and Amortization = $80.0 million %3D Projected Year 1 Net Income = $203.0 million %3D Projected Year 2 Net Income = $223.3 million %3D Given the information above, what is the Projected Year 1 multiple for net income? Select one: O a. 16.1x O b. None of the listed answers O c. 10.6x O d. 11.7x O e. 14.7x
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