Question
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
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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 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
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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Managerial Finance
Authors: Alan Parkinson
1st Edition
0750618264, 978-0750618267
