Search for question
Question

Question 3. Problem 11 (Berk (2018), Chapter 10) After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: Comp 1 Comp 2 Comp 3 Comp 4 EV/EBITDA 12 11 12.5 10 P/E 19 18 20 17 EJH Enterprises has earnings per share of $2, EBITDA of $300 million, $30 million in cash, $40 million. in debt and 100 million shares outstanding. What range of prices is consistent with both sets of multiples? <

Fig: 1