10 free Series 86/87 practice questions in the real exam format, covering the official content areas, with an explanation for every answer.
Series 86/87 Practice Test 10Tutor mode
Question 1 of 10
Valuation and Forecasting
Packaging peer comparables (FY2 estimates; multiples at current share prices)
Company
EV/EBITDA (x)
P/E (x)
EPS growth FY2–FY4 (% a year)
Net debt/EBITDA (x)
Quarry Containers
6.0
12.0
6
1.7
Ridgeline Pack
9.0
15.0
15
3.0
Sutton Box
10.0
16.0
8
2.0
Tamarack Films
9.0
20.0
16
1.0
Norwell Packaging (subject)
—
—
12
Net cash
Norwell: share price $36.00; FY2E EBITDA $900 million; FY2E diluted EPS $2.40; cash $500 million and debt $200 million (net cash $300 million); 150 million diluted shares.
An analyst initiating coverage of Norwell Packaging values the company by applying the peer median FY2E EV/EBITDA multiple in the exhibit to Norwell's FY2E EBITDA. What implied equity value per diluted share does this produce?