Question

In: Finance

AFTER RESEARCHING THE COMPETITORS OF EJH ENTERPRISES YOU DETERMINE THAT THE MOST COMPETITIVE FIRMS HAVE THE...

AFTER RESEARCHING THE COMPETITORS OF EJH ENTERPRISES YOU DETERMINE THAT THE MOST COMPETITIVE FIRMS HAVE THE FOLLOWING RATIOS

                                 Comp 1             Comp 2           Comp 3   Comp 4

EV/EBITDA               12                        11                 12.5        10

P/E                            19                        18                20              17

EJH Enterprise has EPS of $2.00, EBITDA of 300 million $27 million in Cash $42 million in debt and 100 million shares outstanding. What range of prices is consistent with both sets of multiples?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE


Related Solutions

Which of the following is most accurate? perfectly competitive firms are price takers. monopolistically competitive firms...
Which of the following is most accurate? perfectly competitive firms are price takers. monopolistically competitive firms offer a differnetiated product. In a duopoly, only two firms are competing Monopolies use the rule MR=MC to maximize profit. All the above.
PLEASE Create a perceptual map using the following data: After researching the demographic and competitive profile...
PLEASE Create a perceptual map using the following data: After researching the demographic and competitive profile of several markets, they decided Dallas, Texas, would be the best place to start their business. In examining the markets, they were looking for a town that would best fit their target market of singles and families in the age range of 18 to 50. The population of Dallas was almost 5.5 million people, of which about 50 percent were between the ages of...
You have been hired as a consultant for the following perfectly competitive firms firms. Treat each...
You have been hired as a consultant for the following perfectly competitive firms firms. Treat each firm individually. Thus each row represents one firm. You will need to use the MR =MC analysis rules to make the recommendations to the firms. You will be using logic and critical thinking skills to make the suggestions. Examine the information on MR, MC, Price, ATC, AVC and AFC to make a recommendation to each firm. Remember firms want to max their total profits,...
Consider National Competitive Advantage and determine whether firms from a particular country have a global advantage...
Consider National Competitive Advantage and determine whether firms from a particular country have a global advantage in their firm’s industry.
Suppose you have a perfectly competitive industry and firms have positive profits. Explain the forces of...
Suppose you have a perfectly competitive industry and firms have positive profits. Explain the forces of change that will move the situation toward equilibrium (just as in the assignment on this chapter) include what happens in the market diagram and then say how that changes the picture of the firm's diagram (what is the relationship between the firm's Demand and ATC after the adjustment?) be clear about how that picture looks
What firms in perfect competitive market and monopolistic competitive market have in common? How they are...
What firms in perfect competitive market and monopolistic competitive market have in common? How they are different in the long run? Explain using appropriate graphs.
There are 20 firms in a perfectly competitive industry. Ten firms have production function q =...
There are 20 firms in a perfectly competitive industry. Ten firms have production function q = 2L^0.5 while the other ten firms have production function q = 4L^0.5. We label the first type of firms, “low productivity” and the second type of firms, “high productivity.” All firms sell their output at a unit price of P = $1. All firms are price takers in the labor market. Find the profit maximizing demand for labor of the two types of firms....
After you have picked Coca-Cola and its competitors Pepsi company , your Manager has asked that...
After you have picked Coca-Cola and its competitors Pepsi company , your Manager has asked that you provided a brief background on the operations of the two companies as well as on the current stock prices of the two companies. Urgent
WHO ARE YOUR COMPETITORS? Once you determine who and where your customers are, you must determine...
WHO ARE YOUR COMPETITORS? Once you determine who and where your customers are, you must determine whom you have to share them with. Find out if similar products are carried in retail outlets. Once identified, search for information on competitors in industry directories, either in print or online databases. WHAT PRICE DO THEY CHARGE? Establish what your competitors charge and list the selling points of their product or service. Try to find your industry's wholesale and retail prices. WHAT PRICE...
1.In the long run, firms in a perfectly competitive industry are most likely to: A)suppress innovative...
1.In the long run, firms in a perfectly competitive industry are most likely to: A)suppress innovative products to earn a positive economic profit. B)continue to earn positive economic profit because of barriers to entry. C)have a positively sloped average revenue curve. D)earn zero economic profits and produce at minimum cost. E)earn negative economic profits and exit the market. 2.Generally, ______ motivate firms to enter an industry while ______ motivate firms to exit an industry. A)accounting profits; economic losses B)economic profits;...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT