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zzz [600]
3 years ago
6

After researching the competitors of EJH​ Enterprises, you determine that most comparable firms have the following valuation​ ra

tios: 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 ​$1.80​, EBITDA of ​$295 ​million, ​$25 million in​ cash, ​$40 million in​ debt, and 104 million shares outstanding. What range of prices is consistent with both sets of​ multiples?
Business
1 answer:
Vera_Pavlovna [14]3 years ago
4 0

Answer:

The range consistent with both sets would be $34.00 to $37.40. This includes the smallest value that is within both the P/E and EV/EBITDA ranges ($34) and the highest value within both ranges ($37.40)

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If the firm’s beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm’s cost o
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Answer:

CAPM= RF+B(RM-RF)

= 9+1.6(13-9)

=15.4%

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Answer:

D) is less than the value of the marginal product of labor.

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