Question

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 ​$2.00​, EBITDA of ​$300 ​million, ​$28 million in​ cash, ​$45 million in​ debt, and 100 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 ​ EV/EBITDA ranges, is ​$___. (Round to two decimal​ places.)

Highest price within both​ ranges, the​ P/E and the​ EV/EBITDA ranges, is ​$___. ​(Round to two decimal​ places.)

Thank you in advance.

Answer 1