The average EV/EBITDA ratio of the competitor firms to Jorge's Junk Removal is 6.5. Jorge's...
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The average EV/EBITDA ratio of the competitor firms to Jorge's Junk Removal is 6.5. Jorge's Junk Removal has an EBIT of $400 million, depreciation of $100 million, no amortization expense, $500 million in debt, $40 million in cash, and 25 million outstanding shares. What should the price of a share of Jorge's Junk Removal be?
A) $59.60
B) $131.60
C) $32.50
D) $85.60
E) $111.60
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