After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation
Question:
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios (see MyFinanceLab for the data in Excel format):
EJH Enterprises has EPS of $2, EBITDA of $300 million, $30 million in cash, $40 million in debt, and 100 million shares outstanding. What range of prices is consistent with both sets ofmultiples?
Transcribed Image Text:
Comp 1 12 19 Comp 3 12.5 20 Comp 4 10 17 Comp 2 EVIEBITDA P/E 18
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (5 reviews)
EPS 200 EBITDA 30000000 Cash 3000000 ...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
The long-run downward trend in commodity prices is consistent with the idea that: a. We are quickly running out of resources. b. Resource demands have been increasing faster than resource supplies....
-
Both EBITDA to enterprise value and P/ E ratios can be linked to interest rates through the discount rate used in discounted cash flow valuation. Holding all else equal, when discount rates are...
-
After researching several stocks online, you notice that they have continually fluctuated in price. What might be the reason for this? Is a higher-priced stock a better in-vestment than a...
-
Given the following marginal utility schedule for good X and good Y for an individual A, given that the price of X and the price of Y are both $10, and that the individual spends all his income of...
-
WCM Builders enters into a contract to build a shopping mall in 2016 for $6,000,000. Completion of the mall is expected to take 2 years and cost WCM $3,600,000. Upon signing the contract, WCM...
-
At 100 C, d-idose exists mostly (about 86%) as a 1,6-anhydropyranose: (a) Draw the chair conformation of this compound. (b) Explain why d-idose has more of the anhydro form than d-glucose. (Under the...
-
What is the role of HR professionals in information security and privacy management?
-
Michelle Gutierrez, manager of the Components Division of FX Corporation, is considering a new investment for her division. The division has an investment base of $4,000,000 and operating income of...
-
At December 3 1 , 2 0 2 2 , Samson Company reported Accounts Receivable of $ 1 0 5 , 0 0 0 and Allowance for Doubtful Accounts of $ 7 , 5 0 0 . On January 7 , 2 0 2 3 , Delilah, Inc. declares...
-
An increasing number of consumers believe they have to look out for themselves in the marketplace. According to a survey conducted by the Yankelovich Partners for USA WEEKEND magazine, 60% of all...
-
CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 9. CSH has $10 million in debt, $2 million in cash, and 800,000 shares outstanding. What is your estimate of CSHs...
-
Suppose that in May 2010, Nike had EPS of $3.51 and a book value of equity of $18.92 per share. a. Using the average P/E multiple in Table 10.1, estimate Nike's share price. b. What range of share...
-
A 12-V automobile battery with negligible internal resistance can deliver a total charge of 160 A h. (a) What is the total stored energy in the battery? (b) How long could this battery provide 150 W...
-
In the hours before a make-or-break job interview, Emma Valentiner was a bundle of nerves. She wanted to do well, but she was petrified that she would stumble. To relieve her anxiety, she prepared...
-
You are preparing a targeted rsum and cover message for a Fortune 500 company. Youve spoken with a friend who works there, but you now want to do your own research. Your Task. If available, use your...
-
What is the purpose of the following analytical reports? a. Justification/recommendation report b. Feasibility report c. Yardstick report
-
What do Foot Locker, Macys, PetSmart, Neiman Marcus, Walmart, and Burger King have in common? They use pre-employment testing to identify applicants who will fit into the organization. Unlike...
-
If you are starting your job search with Monster.com, CareerBuilder, or similar search tools, then you are starting at the end of the chain, claims job-search author Ryan Guina.44 What do you think...
-
Predecessors, successors, logical relationships, leads and lags, resource requirements, constraints, imposed dates, and assumptions are all examples of ______. a. items in an activity list b. items...
-
1. Advertising for eyeglasses _________ (increases/decreases) the price of eyeglasses because advertising promotes _________. 2. An advertisement that succeeds in getting consumers to try the product...
-
Express a volume of 322 mL in units of: (a) Liters (b) cm 3 (c) m 3 Strategy A flow diagram helps explain the process. Quantities in the flow diagrams are in colored boxes, and processes appear above...
-
How can you interpret the difference between the cost of capital and the IRR?
-
How do you apply the payback rule?
-
Under what conditions will the IRR rule lead to the same decision as the NPV rule?
-
Johnny's Lawn Service camed $200,000 of service revenues for 2020. $190,000 was collected in cash and $10,000 remains in Accounts Receivable as of 12/31/20. S155,000 of expense was incurred during...
-
Company BW has $500,000 loan outstanding. The annual loan interest rate is 6% with monthly compounding (meaning BW is making monthly payments). Find the annual after-tax cost of debt for the loan.
-
The hierarchical system of classification is intended to be a map of evolution. Explain this statement. What is implied about species that occur on the same branch of a phylogenetic tree?
Study smarter with the SolutionInn App