FFDP Corp. has yearly sales of $28.8 million and costs of $13.5 million. The com
ID: 2764085 • Letter: F
Question
FFDP Corp. has yearly sales of $28.8 million and costs of $13.5 million. The company’s balance sheet shows debt of $54.8 million and cash of $38.8 million. There are 1,960,000 shares outstanding and the industry EV/EBITDA multiple is 8.3. What is the company’s enterprise value? (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to the nearest whole number.) Enterprise value $ What is the stock price per share? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) Stock price $
Explanation / Answer
Solution :
EV/EBITDA =
8.30
EV = (8.3*15300000)
126,990,000
Enterprise Value=Market Capitalization + Total Debt - Cash
126990000=Market capitalization+54800000-38800000
market capitalisation
110,990,000
shares outstanding
1,960,000
stock price per share
56.63
SALES
28,800,000
COST
- 13,500,000
EBITDA
15,300,000
EV/EBITDA =
8.30
EV = (8.3*15300000)
126,990,000
Enterprise Value=Market Capitalization + Total Debt - Cash
126990000=Market capitalization+54800000-38800000
market capitalisation
110,990,000
shares outstanding
1,960,000
stock price per share
56.63
SALES
28,800,000
COST
- 13,500,000
EBITDA
15,300,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.