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.

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Definitions:

Disclosed

Disclosed involves the revelation or sharing of previously private or confidential information with parties that need or request it.

Partially Disclosed

A situation where only limited information is made available or certain details are revealed while others remain confidential.

Breach of Contract

The failure to perform any term of a contract, written or oral, without a legitimate legal excuse.

Implied Warranty

A legal assumption that a product will perform as expected according to the sale terms without being explicitly stated.