Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the information below to answer questions 26-27. Yr.1 Yr.4 Revenues 2000 2300 EBITDA 800 900 Debt 1650 1400 Rent 200 200 26. Calculate interest
Use the information below to answer questions 26-27.
Yr.1 Yr.4
Revenues 2000 2300
EBITDA 800 900
Debt 1650 1400
Rent 200 200
26. Calculate interest coverage, fixed charge coverage and Debt/EBITDA in year 4.
27. Assume the company was purchased for a 7x multiple at the end of year 1, financed with 1650 of debt. If the company were sold at the end of year 4 for the same multiple, what would the equity return be?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started