eBook Problem Walk-Through You are given the following information: Stockholders' equity as reported on the firm’s balance sheet...

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Finance

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Problem Walk-Through

You are given the following information: Stockholders' equity asreported on the firm’s balance sheet = $6.75 billion,price/earnings ratio = 10.5, common shares outstanding = 140million, and market/book ratio = 2.2. The firm's market value oftotal debt is $4 billion, the firm has cash and equivalentstotaling $230 million, and the firm's EBITDA equals $1 billion.What is the price of a share of the company's common stock? Do notround intermediate calculations. Round your answer to the nearestcent.

What is the firm's EV/EBITDA? Do not round intermediatecalculations. Round your answer to two decimal places.

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Market to book value ratio is calculated using the belowratio Market value of shares Book value of equity22 Market value    See Answer
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eBookProblem Walk-ThroughYou are given the following information: Stockholders' equity asreported on the firm’s balance sheet = $6.75 billion,price/earnings ratio = 10.5, common shares outstanding = 140million, and market/book ratio = 2.2. The firm's market value oftotal debt is $4 billion, the firm has cash and equivalentstotaling $230 million, and the firm's EBITDA equals $1 billion.What is the price of a share of the company's common stock? Do notround intermediate calculations. Round your answer to the nearestcent.What is the firm's EV/EBITDA? Do not round intermediatecalculations. Round your answer to two decimal places.

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