Business
10.02.2021 21:26
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You are given the following information: stockholders equity as reported on the
You are given the following information: stockholders' equity as reported on the firm’s balance sheet = $4 billion, price/earnings ratio = 20.5, common shares outstanding = 60 million, and market/book ratio = 1.7. the firm's market value of total debt is $8 billion; the firm has cash and equivalents totaling $320 million; and the firm's ebitda equals $1 billion.
what is the price of a share of the company's common stock? do not round intermediate calculations. round your answer to the nearest cent. $
what is the firm's ev/ebitda? do not round intermediate calculations. round your answer to two decimal places.
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what is the price of a share of the company's common stock? do not round intermediate calculations. round your answer to the nearest cent. $
what is the firm's ev/ebitda? do not round intermediate calculations. round your answer to two decimal places.
kelseatuttleni
4,7(19 marks)
Explanation:
1. Shareholder's Equity = 4 billion
shares outstanding = 60 million
Book value/ share = 4000/60 = $66.66/ share
Market value / Book Value = 1.7
Market value of stock = 1.7*66.6=$113.22
2. EBITDA or earnings before interest, taxes, depreciation and amortization
Enterprise value (EV) = Market value of equity . + Market value of debt. - Cash =4bill + 8bill - 320million
=12 billion -320 million
=1.168 billion
gseaton02
4,7(87 marks)
U.S. Corporations May Be Publicly Traded or Privately Held
To promote trading of its stock, a corporation may choose to list its shares on a stock exchange. Apple, Walmart and Ford are high-profile publicly traded corporations, but smaller companies also trade on the major exchanges.
Explanation:
Because I know.
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