How do I go about solving this? 27. Stock Valuation and EV FFDP Corp, has yearly sales of $48 million and costs of $15million. The company's balance sheet shows debt of $64 million and cash of $23 million.There are 1.95 million shares outstanding and the industry EV/EBITDA multiple is 6.4.What is the company's enterprise value? What is the stock price per share?s0115

Answered: Stock Valuation and E million. The…

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 3P: Winston Watch’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance...

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How do I go about solving this?

27. Stock Valuation and EV FFDP Corp, has yearly sales of $48 million and costs of $15
million. The company's balance sheet shows debt of $64 million and cash of $23 million.
There are 1.95 million shares outstanding and the industry EV/EBITDA multiple is 6.4.
What is the company's enterprise value? What is the stock price per share?
s0115

Expert Solution

Step 1

Introduction:

The term enterprise value would imply as the amount of money which would be required to purchase the company. Hence it is considered as an economic measure reflecting the company's market value.

Stock price per share can be defined as the highest value that someone would be willing to buy the stock of a particular company.

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