You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $2.25 billion, price/earnings ratio = 11.5, common shares outstanding = 190 million, and market/book ratio 2.5. The firm's market value of total debt is $4 billion, the firm has cash and equivalents totaling $260 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.
You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $2.25 billion, price/earnings ratio = 11.5, common shares outstanding = 190 million, and market/book ratio 2.5. The firm's market value of total debt is $4 billion, the firm has cash and equivalents totaling $260 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.
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
Related questions
Question
common stock? Do
not round
intermediate
calculations. Round
your answer to the
nearest cent. $
What is the firm's
EV/EBITDA? Until
not round
intermediate
calculations, Round
your answer to two
decimal places.
Transcribed Image Text:You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $2.25 billion, price/earnings ratio = 11.5, common shares outstanding = 190 million, and market/book
ratio 2.5. The firm's market value of total debt is $4 billion, the firm has cash and equivalents totaling $260 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's
common stock? Do not round intermediate calculations. Round your answer to the nearest cent.
$
What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.
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