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3) In 2018, Chevelle Company has sales of $39,500, cost of $18,400, and depreciation of $1,900 and interest expense of $1,400. Its tax rate is

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3) In 2018, Chevelle Company has sales of $39,500, cost of $18,400, and depreciation of $1,900 and interest expense of $1,400. Its tax rate is 35%. It has a stock market value of $250,000 and debt borrowing of $100,000. It has little cash on balance sheet and pays a dividend of $3,470 in 2018. a) Construct an income statement; b) What's the retained earnings? c) What's its EBITDA? d) What's its Enterprise Value (EV)? e) What's its EV /EBITDA valuation

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