Answered: estimate of CSH’s share

Business

Accounting

estimate of CSH’s share

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5P: Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are...

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Question

CSH has EBITDA of $5 million. You feel that an appropriate enterprise value/EBITDA ratio for CSH is 9. CSH has $10 million in debt, $2 million in cash and 800 000 shares outstanding. What is your estimate of CSH’s share price?

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