FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm has EBITDA of $8 billion. A firm has 500 million shares outstanding and its trading trading at 40 per share. On the balance

A firm has EBITDA of $8 billion. A firm has 500 million shares outstanding and its trading trading at 40 per share. On the balance sheet, a firm has notes payable of 1 Billion and long term debt of 15 billion, common equit of 7 billion. A firm has cahs equivalent of 200 million. Assum debt is trading at 10% above its par value. What is EV/EBITDA

A. 6.48x

B. 7.50X

C. 4.68X

4. 21.9X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Read A Financial Report Wringing Vital Signs Out Of The Numbers

How To Read A Financial Report Wringing Vital Signs Out Of The Numbers

Authors: John A. Tracy , Tage C. Tracy

9th Edition

1119606462,1119606489

More Books

Students also viewed these Finance questions

Question

★★★★★
Draw the network and identify the critical path. Also calculate the earliestlatest starting and finishing times for eachactivity: 467855784 C. | | ABBCDDE A B C D E F G H I

Answered: 1 week ago

Question

★★★★★
Exercise 6-7 (Part Level Submission) What would you pay for a $150,000 debenture bond that matures in 15 years and pays $7,500 a year in interest if you wanted to earn a yield of: 2%? Amount to pay?

Answered: 1 week ago

Question

★★★★★
10 Most firms rarely engage in explicit formal strategy evaluation . . . rather, it is a continuing process that is difficult to separate from normal planning, reporting and control. (Richard Rumelt)...

Answered: 1 week ago

Question

★★★★★
During July 2014, Micanopy, Inc., sold 500 units of its product Empire for $8,000. The following units were available: A sale of 500 units was made after purchase 3. Of the units sold, 200 came from...

Answered: 1 week ago

Question

★★★★★
1) how much money would you need to deposit today at 19.80% annual interest compounded quarterly, to have $25,626.00 in the account after 4 years? 2) If you deposit $59.00 into an account paying...

Answered: 1 week ago

Question

★★★★★
Rehab Physical Therapy Inc. is planning its cash payments for operations for the second quarter (MarchMay) . The Accrued Expenses Payable balance on March 1 is $36,000. The budgeted expenses for the...

Answered: 1 week ago

Question

★★★★★
Lorch Company prepares monthly cash budgets. Relevant data from operating budgets for 2021 are as follows: January February Sales $352,000 $398,000 Direct materials purchases 121,000 110,000 Direct...

Answered: 1 week ago

Question

★★★★★
For tax year 2021, determine the number of dependents in each of the following independent situations. For example: 0, 1, 2, 3, and so on. a. Bin and Molly (ages 48 and 46, respectively) are married...

Answered: 1 week ago

Question

★★★★★
Suppose you took part in a national exam. Your test results indicated that you were in the 79th percentile on the exam. What does this mean? Select ALL that apply Group of answer choices Your score...

Answered: 1 week ago

Question

★★★★★
00:19:58 Question #15 of 25 Qu A client who is primarily concerned that inflation might erode the purchasing power of his annuity income would NOT be a good candidate for ik NR han Pleas such surrel...

Answered: 1 week ago

Question

★★★★★
Jolene is having some friends over and her 11-month-old daughter begins to cry. Jolene ignores the baby for a while until her friends ask her if she wants to go tend to the baby. Jolene then gets a...

Answered: 1 week ago

Previous Question Next Question