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

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Definitions:

Repeated Testing

In experimental design, a threat to internal validity due to participants becoming more and more familiar with a test.

Dropouts

Individuals who disengage or withdraw from a program, study, or activity before completion.

Online Experiments

Research studies conducted over the internet, allowing for wider participation and data collection from diverse geographical locations.

Barriers

Obstacles or impediments that prevent or hinder progress toward a goal or completion of a task.