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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 462 Taxes 182 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. $ 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. (a) Your answer is incorrect Calculate the P/E multiple for Billy's Tools. (Round answer to 2 decimal places, eg. 15.25.) Billy Tool's P/E multiple is e Textbook and Media Save for Later Attempts: 1 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above (c) The parts of this question must be completed in order. This part will be available when you complete the part above

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