Given the information in the following table, answer the questions Company RGI NCI Price per share 150 100 Shares outstanding 5 million 2 million Market value of Debt 50 100 Book value of Debt 52 112 Cash and cash equivalents 5 2 Net income 49 5 12 EBITDA 62 5 20 A) Calculate the P E for RGI and NCI B) Calculate the EV EBITDA for RGI and NCI (Enterprise value (EV) of a firm is defined as the sum of the market values of the firms interest bearing debt and its equity minus the firms cash balance on the date of the valuation

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Question: Given the information in the following table, answer the questions: Company RGI NCI Price per share 150 100 Shares outstanding 5 million 2 million Market

Given the information in the following table, answer the questions:

Company	RGI	NCI
Price per share	150	100
Shares outstanding	5 million	2 million
Market value of Debt	50	100
Book value of Debt	52	112
Cash and cash equivalents	5	2
Net income	49.5	12
EBITDA	62.5	20

A) Calculate the P/E for RGI and NCI

B) Calculate the EV/EBITDA for RGI and NCI (Enterprise value (EV) of a firm is defined as the sum of the market values of the firms interest-bearing debt and its equity minus the firms cash balance on the date of the valuation

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