Unformatted text preview: Mean? A valuation measurement used to compare companies with varying levels of debt. This is calculated as: TEV = Market Capitalization + Interest Bearing Debt + Preferred Stock- Excess Cash. TEV= (11,750,000)(sold first stake CHB) + (846,000) + (4,731,000) – (7,975,000) Based on Graphs ( Spyder has Sales Multiple of 1.7 and EBITDA Multiple of 9.8) Very Similar to Converse in Multiples Take 2004 sales which is 8,000,000 and multiple by sales multiple 1.7= $13,600,000 would be an appropriate measure. No common stock, all preferred. Find Price per Share for 2004= Find Earnings Per Share for 2004= 5,069,000(Net Income) – Dividends Paidout (0)/Average Shares Outstanding (4,731,000)= 5,069,000/4,731,000= 1.071...
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This note was uploaded on 09/08/2010 for the course BUS 173C at San Jose State.