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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
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