table, what is the share price when the price to book (P/B) multiple of a comparable company is 2.5x?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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N1.

Account 

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
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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