Use the Information for the Question(s)below

question 35

Multiple Choice

Use the information for the question(s) below.
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 of $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 price earnings multiple,the value of a share of Texas Trucking is closest to:

• A)$49.30
• B)$43.10
• C)$24.15
• D)$27.60

---

Definitions:

Smart Car

A vehicle embedded with advanced technology that offers greater efficiency, safety, and connectivity compared to traditional cars.

Navigation App

A mobile or web application that provides directions, optimal routes, and other travel information to users.

Virtual Assistant

A program that executes tasks or services for a person in response to commands or inquiries.

Intelligent Workplace

An environment that uses digital technology and automation to improve efficiency and effectiveness in the office setting.