Jackmaster is an entrainment company with two business lines namely, online entertainment and live concert

planning. Jackmater has $2 billion in market value of debt outstanding, $750 million in cash and marketable

securities and 150 million shares outstanding. Jackmaster generated 2 billion in revenues but an operating loss

of $200 million from the online entertainment business. Most publicly traded companies in the sector reported

operating losses with an average EV/Sales ratio of 1.4. Jackmaster generated $3 billion in revenues and EBITDA

of $300 million from live concert business. The live concert planning companies that are publicly traded reported

an average EV/EBITDA of 10.

 Estimate Jackmaster's value of equity per share.

Answer rating: 100% (QA)

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