Use the Information for the Question(s)below

question 80

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 enterprise value to EBITDA ratio,the value of a share of Texas Trucking is closest to:

• A)$33.00.
• B)$82.50.
• C)$43.10.
• D)$21.25.

---

Definitions:

Token Economy

A form of behavior modification program where individuals earn tokens for exhibiting desired behaviors and can exchange them for various rewards.

Public Dining

The act of eating meals in communal areas accessible to the general public, such as restaurants or cafes.

Psychotherapy

A therapeutic treatment involving talking with a mental health professional to address emotional and psychological issues.

Unconditional Positive Regard

In psychology, an attitude of total acceptance and support towards another person, regardless of what they say or do.