单选题
An investor considering the enterprise value approach to valuation gathers the following data:
| EBIFDA | $65.8 million |
| Value of debt | $90.0 million |
| Value of preferred stock | $25.4 million |
| Cash&marketable securities | $6.9 million |
| Number of common shares outstanding | 12.5 million |
| Firm's tax rate | 30% |
| Appropriate EV/EBITDA multiple | 6x |
The value per share of the company's common stock is closest to:
【正确答案】
C
【答案解析】
First, compute the enterprise value (EV) from EBIDTA x EV/EBITDA multiple.
Then determine market capitalization (value of equity) using the following expression (see p.297). Finally, compute the value per share.
EV = Market capitalization + MV of preferred stock + MV of debt - Cash and investments
Market capitalization = EV - MV of Preferred stock - MV of debt - Cash and investments
Value per share = Market capitalization/Number of outstanding shares.
