After researching the competitors of EJH Enterprises, you determine that most comparable firms have the...
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Accounting
After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios: Comp 1 Comp 2 Comp 3 Comp 4 EV/EBITDA 12 11 12.5 10 P/E 19 18 20 17 EJH Enterprises has EPS of $1.90, EBITDA of $300 million, $29 million in cash, 542 million in debt, and 101 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 $. (Round to two decimal places.) Highest price within both ranges, the P/E and the EVEBITDA ranges, is $. (Round to two decimal places.) Assume that Cola Co. has a share price of $42 35. The firm will pay a dividend of $1.34 in one year, and you expect Cola Co. to raise this dividend by approximately 6.8% per year in perpetuity. a. If Cola Co.'s equity cost of capital is 8.5%, what share price would you expect based on your estimate of the dividend growth rate? b. Given Cola Co.'s share price, what would you conclude about your assessment of Cola Co.'s future dividend growth? a. If Cola Co.'s equity cost of capital is 8.5%, what share price would you expect based on your estimate of the dividend growth rate? Cola Co.'s price per share should be $ - (Round to the nearest cent.) b. Given Cola Co.'s share price, what would you conclude about your assessment of Cola Co.'s future dividend growth? Given Cola Co.'s share price today, its dividend growth rate should be % (Round to two decimal places.)


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