In 2018, Chevelle Company has sales of $39,500, cost of $18,400, and depreciation of

$1,900 and interest expense of $1,400. Its tax rate is 35%. It has a stock market value

of $250,000 and debt borrowing of $100,000. It has little cash on balance sheet and

pays a dividend of $3,470 in 2018.

a) Construct an income statement;

b) Whats the retained earnings?

c) Whats its EBITDA?

d) Whats its Enterprise Value (EV)?

e) Whats its EV /EBITDA valuation?