Suppose that Texas Trucking (TT) has earnings per share of $3.45 and EBITDA of $45 million. TT also has 5 million shares outstanding and debt o $150 million (net of cash). You believe that Oklahoma Logistics and Transport (OLT) is comparable to TT in terms of its underlying business, but OLT has no debt. OLT has a P/E of 12.5 and an enterprise value to EBITDA multiple of 7. Based upon the enterprise value to EBITDA ratio, the value of a share of Texas Trucking is closest to:

$33.00 per share

Explanation:

Calculation to the value of a share of Texas Trucking

Using this formula

Enterprise value = EBITDA × multiple

Let plug in the formula

Enterprise value = $45 × 7 = $315

Enterprise value=$315- $150

Enterprise value=$165

Enterprise value=$165/5 million share

Enterprise value = $33.00 per share

Therefore the value of a share of Texas Trucking is closest to:$33.00 per share

hi noah!

the first time you break a rule, you get a warning.

if you continue to break rules you get kicked out for a certain amount of time.

so, to answer your question 1.

hope this buddy!

- courtney

hi i’m a student too and i’ve had this app downalodes for a few weeks people do answer it you just gotta be patient and what is your question + subject i’ll you?