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:

Urban Sociability

The ways in which individuals in urban environments interact, form relationships, and create networks of social support and engagement.

High-Poverty Neighborhoods

Areas characterized by a substantial proportion of residents living below the poverty line, often facing challenges such as reduced access to quality education and healthcare.

Midwest

A geographical region of the United States generally considered to include the north-central states, known for its agriculture, conservative values, and being a significant part of the country's manufacturing belt.

South

A direction or region typically referred to as being below or toward a lower position, often used in geographical contexts.