You are given the following information: Stockholders equity as reported on the firms balance sheet = $6.5

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You are given the following information: Stockholders’ equity as reported on the firm’s balance sheet = $6.5 billion, price ∕ earnings ratio = 9, common shares outstanding =180 million, and market/book ratio = 2.0. The firm’s market value of total debt is $7 billion, the firm has cash and equivalents totaling $250 million, and the firm’s EBITDA equals $2 billion. What is the price of a share of the company’s common stock? What is the firm’s EV/EBITDA?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Fundamentals of Financial Management

ISBN: 978-1337395250

15th edition

Authors: Eugene F. Brigham, Joel F. Houston

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