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ABC Corp. has annual revenue of $400,000 with costs of $216,400. Depreciation is $48,900 and the tax rate is 21 percent. The firm has debt

  1. ABC Corp. has annual revenue of $400,000 with costs of $216,400. Depreciation is $48,900 and the tax rate is 21 percent. The firm has debt outstanding with a market value of $182,000 along with 9,500 shares of stock that is selling at $67 a share. The firm has $48,000 of cash of which $29,500 is needed to run the business. What is the firm's EV/EBITDA ratio?

    5.57

    6.20

    4.35

    4.46

    3.93

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