Solution-Rib estimated share price

Rib estimated share price

Reference no: EM132611743

Roses In Bloom Corp. (RIB) is in the process of estimating its current share price. RIB currently has debt outstanding of $5,400,000 (the market value is $5,830,000) and 200,000 common shares outstanding. A summary of its income statement follows: Sales $2,890,000 Operating expenses (1,667,000) Depreciation and amortization (398,000) Interest expenses (236,000) Earnings before taxes 589,000 Income tax expense (150,000) Net income $439,000 Based on a review of comparable companies, the EV/EBITDA multiple for valuation purposes is 7.8. Which of the following is RIB's estimated share price?

Reference no: EM132611743

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Rib estimated share price

Reference no: EM132611743

Reference no: EM132611743

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