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Jose Callehandro is researching the relative valuation of two companies, Dou Suin Klein (DSK) and...

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Finance

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Jose Callehandro is researching the relative valuation of two companies, Dou Suin Klein (DSK) and Rolan Mullan Group (RMG). He has gathered relevant information on the companies in the following table. EBITDA Comparisons (in $ Millions except Per-Share and Share- Count Data) Company RMG DSK Price per share 120 122.9 Shares outstanding 2 million 1 million Market value of debt 54.15 32.66 Book value of debt 95.31 107.35 Cash and investments 5 2 Net Income 19.64 17.29 Net Income from continuing operations 7.18 8.16 Interest expense 4.54 5.05 Company RMG DSK Price per share 120 122.9 Shares outstanding 2 million 1 million Market value of debt 54.15 32.66 Book value of debt 95.31 107.35 Cash and investments 5 2 Net income 19.64 17.29 Net income from continuing operations 7.18 8.16 Interest expense 4.54 5.05 Depreciation and amortization 8 3.65 Taxes 2 3.66 Using the information in the table, calculate P/EBITDA for DSK. Round your answer to 2 decimal places

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