Peake Industries has $2,500,000,000 in total assetsof which cash and equivalents total $30,000,000. Its balance sheet shows $300,000,000 in current liabilitiesof which the notes payable balance totals $150,000,000. The firm also has $1,200,000,000 in long-term debt and $1,000,000,000 in common equity. It has 40 million shares of common stock outstanding, and its stock price is $30 per share. The firms EBITDA totals $504,000,000. Assume the firms debt is priced at par, so the market value of its debt equals its book value. What is Peakes EV/EBITDA ratio? (Note: You may want to refer to the Summary of Ratios worksheet in Module 1 on the courses canvas website.)

a. 3.00

b. 3.50

c. 4.00

d. 4.50

e. 5.00