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Use the information for the question(s) below. Suppose that Texas Trucking (...
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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:
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