Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ataboy Ltd. is trading at a forward (EVEBIT1(1)) ratio of 12.5, an after-tax operating margin of 10% and a return on capital (ROC) equal to

Ataboy Ltd. is trading at a forward (EVEBIT1(1)) ratio of 12.5, an after-tax operating margin of 10% and a return on capital (ROC) equal to 8%. What are the company's (EVCapital) and (EVSales) ratios equal to: Group of answer choices

EV/Capital=1 and EV/Sales=1

EV/Capital=1 and EV/Sales=1.25

EV/Capital=1.5625 and EV/Sales=1.25

EV/Capital=1.25 and EV/Sales=1.25

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_2

Step: 3

blur-text-image_3

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

Enterprise Applications And Services In The Finance Industry

Authors: Artur Lugmayr

1st Edition

331928150X,3319281518

More Books

Students also viewed these Finance questions