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Cullumber's income statement from the fiscal year that ended this past December is: Revenue $1,234 Cost of goods sold 808 Gross profit $426 Selling general, & administrative expenses 167 Operating profit (EBIT) $259 Interest expense 60 Earnings before taxes $199 Taxes 79 Net income $120 All dollar values are in millions. Depreciation and amortization expenses last year were $52 million and the company has $661 million of debt outstanding You are an analyst at a private equity firm that buys private companies, improves their operating performance, and sells them for a profit. Your boss has asked you to estimate the fair market value of the Cullumber Machine Tool Company. Billy's Tools is a public company with business operations that are virtually identical to those at Cullumber. The most recent income statement for Billy's Tools is as follows: Revenue $ 2,187 Cost of goods sold 1,448 Gross profit $ 739 Selling general, & administrative expenses 262 Operating profit (EBIT) $ 477 Interest expense 15 Earnings before taxes Taxes Net Income 280 All dollar values are in millions Billy's had depreciation and amortization expenses of $88 million last year and had 250 million shares and $740 million of debt outstanding as of the end of the year. Its stock is currently trading at $15.25 per share. $ 462 182 What is the per share value of Cullumber's stock assuming 250 million shares are outstanding. (Round answer to 2 decimal places, eg. 15.25.) The per share value of Cullumber's stock is $ 6.54 eTextbook and Media Attempts: 2 of 3 used Your answer is incorrect. What is the total value of Cullumber Machine Tool Company? (Round answer to 2 decimal places, eg. 15.25.) The total value of Cullumber Machine Tool Company is $ million (c)

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