Question

CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 10. CSH has $7 million in debt, $4 mill

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Answer #1

EV/EBITDA = 10

So,

EV = 10(5) = 50 million

50,000,000 = 750,000(P) + 7,000,000 - 4,000,000

So,

P = $62.67

So,

Price per Share = $62.67

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