Problem:
FFDP Corp. has yearly sales of $28 million and costs of $12 million. The company's balance sheet shows debt of $54 million and cash of $18 million. There are 950,000 shares outstanding and the industry EV/EBITDA multiple is 7.5.
Required:
Question 1: What is the company's enterprise value?
Question 2: What is the stock price per share?
Note: Explain the solution in detail.