Problem
Tompkins Bank is trying to value Ithaca Beer Co. using comparable valuation techniques. Ithaca Beer's estimated EBITDA for the coming year is $11M and the median forward enterprise value to EBITDA ratio of comparable firms is 7.15. The market value of Ithaca Beer's debt is $30M and it has no outstanding preferred stock and 1M shares of common stock. Estimate the value of common stock using the enterprise value to EBITDA ratio.