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eBook Problem Walk-Through You are given the following information: Stockholders' equity as reported on the firm’s balance sheet...

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Finance

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Problem Walk-Through

You are given the following information: Stockholders' equity asreported on the firm’s balance sheet = $6.75 billion,price/earnings ratio = 10.5, common shares outstanding = 140million, and market/book ratio = 2.2. The firm's market value oftotal debt is $4 billion, the firm has cash and equivalentstotaling $230 million, and the firm's EBITDA equals $1 billion.What is the price of a share of the company's common stock? Do notround intermediate calculations. Round your answer to the nearestcent.

What is the firm's EV/EBITDA? Do not round intermediatecalculations. Round your answer to two decimal places.

Answer & Explanation Solved by verified expert
3.8 Ratings (769 Votes)
Market to book value ratio is calculated using the belowratio Market value of shares Book value of equity22 Market value    See Answer
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eBookProblem Walk-ThroughYou are given the following information: Stockholders' equity asreported on the firm’s balance sheet = $6.75 billion,price/earnings ratio = 10.5, common shares outstanding = 140million, and market/book ratio = 2.2. The firm's market value oftotal debt is $4 billion, the firm has cash and equivalentstotaling $230 million, and the firm's EBITDA equals $1 billion.What is the price of a share of the company's common stock? Do notround intermediate calculations. Round your answer to the nearestcent.What is the firm's EV/EBITDA? Do not round intermediatecalculations. Round your answer to two decimal places.

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