Question
Lassiter Motors has a debt-equity ratio of 0.45 and total debt of $186,000. The firm's market-to-book ratio is 2.6. The earnings before interest and taxes
Lassiter Motors has a debt-equity ratio of 0.45 and total debt of $186,000. The firm's market-to-book ratio is 2.6. The earnings before interest and taxes is $69,200, interest is $26,400, depreciation and amortization total $87,100, and the tax rate is 34 percent. What is the firm's EV to EBITDA ratio if the firm has $31,000 in cash?
A.7.34
B.7.87
C.6.01
D.6.38
E.5.47
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
