Question 4 (1 point) Coconut Inc. is a private firm that produces industrial laser equipment. It has expected EBIT of $13.5 million this year. The company currently has 12.5 million shares, $6.0 million cash, and no debt. It also has a plan to issue 33.5 million shares. Calculate the share price of Coconut Inc. based on the average EBIT multiple of similar companies: Ray Products Corp. Byce-Frasier, Inc. Fire Industries Market value of equity Value of debt Cash EBIT 210 15 17 15 210 45 20 13 210 5 SO 3 11 Instructions: Round the result to two decimal places and do not put the "$" symbol in the answer box. For example if you get a result of $17.8492 then write 17.85 in the answer box below. Your Answer:
Question 4 (1 point) Coconut Inc. is a private firm that produces industrial laser equipment. It has expected EBIT of $13.5 million this year. The company currently has 12.5 million shares, $6.0 million cash, and no debt. It also has a plan to issue 33.5 million shares. Calculate the share price of Coconut Inc. based on the average EBIT multiple of similar companies: Ray Products Corp. Byce-Frasier, Inc. Fire Industries Market value of equity Value of debt Cash EBIT 210 15 17 15 210 45 20 13 210 5 SO 3 11 Instructions: Round the result to two decimal places and do not put the "$" symbol in the answer box. For example if you get a result of $17.8492 then write 17.85 in the answer box below. Your Answer:
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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Transcribed Image Text:Question 4 (1 point)
Coconut Inc. is a private firm that produces industrial laser equipment. It has
expected EBIT of $13.5 million this year. The company currently has 12.5 million
shares, $6.0 million cash, and no debt. It also has a plan to issue 33.5 million shares.
Calculate the share price of Coconut Inc. based on the average EBIT multiple of
similar companies:
Ray Products Corp. Byce-Frasier, Inc. Fire Industries
Market value of equity
Value of debt
Cash
EBIT
210
15
17
15
210
45
20
13
210
5
SO
3
11
Instructions: Round the result to two decimal places and do not put the "$" symbol in
the answer box. For example if you get a result of $17.8492 then write 17.85 in the
answer box below.
Your Answer:
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