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Calculate the implied stock price assuming an EBITDA multiple of 11.2x.
(All data in millions)
Select one:
a. $33.42
b. $41.93
c. $24.14
d. $20.58
e. $21.72Short-term debt:$22.5Shares Outstanding:18.330Convertible debt$0.0Diluted shares
outstanding:21.501Long-term debt:$253.5Cash & equivalents:$46.5Total
liabilities:$676.8Minority interest:$0.0EBITDA:$60.0Net income:$21.2
Solution
EBITDA 60 11.2 672 Enterprise Value 672 Less : Short-Term debt -22.5 Long-
term debt -253.5 Add: Cash 46.5 Equity Value 442.5 Diluted shares outstanding 21.501
Implied value of stock 20.58

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