Question: (# in millions, except per share figures) EBITDA : 10 (x) EBITDA multiple : 10x Financial debt : 30 Cash : 5 Number of shares

(# in millions, except per share figures)

EBITDA : 10

(x) EBITDA multiple : 10x

Financial debt : 30

Cash : 5

Number of shares outstanding : 10

  1. Calculate the share price.
  2. Now, your share price is 10, and you issue 20 million convertible bonds. Your conversion ratio is 125 shares for 1,000 of convertible bonds. What is you entreprise value (EV)?
  3. Now, you have carried out a buyback of 15 million financed with 20 million of debt. What is your share price?

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