Problem
You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $3.25 billion, price/earnings ratio = 17.5, common shares outstanding = 140 million, and market/book ratio = 2.3. The firm's market value of total debt is $4 billion, the firm has cash and equivalents totaling $240 million, and the firm's EBITDA equals $3 billion.
What is the price of a share of the company's common stock? Do not round intermediate calculations.
What is the firm's EV/EBITDA? Do not round intermediate calculations.