Question

FFDP Corp. has yearly sales of $29.6 million and costs of $15.1 million. The company’s balance sheet shows debt of $55.6 million and cash of $39.6 million. There are 1,960,000 shares outstanding and the industry EV/EBITDA multiple is 9.1. What is the company’s enterprise value? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) What is the stock price per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

6 FFDP Corp. has yearly sales of $29.6 million and costs of $15.1 million. The company's balance sheet shows debt of $55.6 million and cash of $39.6million. There are 1,960,000 shares outstanding and the industry EV/EBITDA multiple is 9.1. What is the company's enterprise value? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) What is the stock price per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) points еВook References Enterprise value Stock price 10

Answer 1

1.
=EV/EBITDA*(Sales-Costs)
=9.1*(29.6-15.1)
=131.95000 million
=131,950,000

2.
=(Enterprise Value-Debt+Cash)/Number of shares
=(131.95-55.6+39.6)*10^6/1960000
=59.15816