Aher researching the competitors of EH Enterprises, you determine that most comparable firms have the following valuation ratios: EJH Enterprises has EPS of $2.00, EBITDA of $300 million, $29 million in cash, $42 million in debt, and 100 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be: Lowest price within both ranges, the P/E and EV/EBITDA ranges, is $ (Round to two decimal places.) 1 Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $(Round to two decimal places)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Comp 2
Comp 3
11
12.5
18
20
EV/EBITDA
P/E
Comp 1
12
19
Comp 4
10
17
Transcribed Image Text:(Click on the following icon in order to copy its contents into a spreadsheet.) Comp 2 Comp 3 11 12.5 18 20 EV/EBITDA P/E Comp 1 12 19 Comp 4 10 17
Aher researching the competitors of EH Enterprises, you determine that most comparable firms have the following valuation ratios: EJH Enterprises has EPS of $2.00, EBITDA of $300 million,
$29 million in cash, $42 million in debt, and 100 million shares outstanding. What range of prices is consistent with both sets of multiples?
The range of prices will be:
Lowest price within both ranges, the P/E and EVEBITDA ranges, is 5
(Round to two decimal places)
Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $(Round to two decimal places)
Transcribed Image Text:Aher researching the competitors of EH Enterprises, you determine that most comparable firms have the following valuation ratios: EJH Enterprises has EPS of $2.00, EBITDA of $300 million, $29 million in cash, $42 million in debt, and 100 million shares outstanding. What range of prices is consistent with both sets of multiples? The range of prices will be: Lowest price within both ranges, the P/E and EVEBITDA ranges, is 5 (Round to two decimal places) Highest price within both ranges, the P/E and the EV/EBITDA ranges, is $(Round to two decimal places)
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