Problem

Stock Valuation and EV FFDP Corp. has yearly sales of $28 million and costs of $12 m...

Stock Valuation and EV FFDP Corp. has yearly sales of $28 million and costs of $12 million. The company’s balance sheet shows debt of $54 million and cash of $18 million. There are 950,000 shares outstanding and the industry EV/EBITDA multiple is 7.5. What is the company’s enterprise value? What is the stock price per share?

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