Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the Debt/EBITDA ratio? Answer in the form of 3.0x (one decimal place...hint: should end in .0x or .5x) Assume: Revenue - $500 Interest

What is the Debt/EBITDA ratio? Answer in the form of 3.0x (one decimal place...hint: should end in .0x or .5x)

Assume:

  1. Revenue - $500
  2. Interest expense - $10
  3. Depreciation and amortization - $4
  4. PP&E - $15
  5. Taxes paid - $6
  6. Debt due within one year - $12
  7. Capital Expenditures - $11
  8. Net Income - $30
  9. Total Debt - $250
  10. Accounts receivable - $2.5

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

Managerial Finance Essentials

Authors: Charles O. Kroncke, Alan E. Grunewald, Erwin Esser Nemmers

2nd Edition

0829901590, 978-0829901597

More Books

Students also viewed these Finance questions

Question

7.1 Define selection and discuss its strategic importance.

Answered: 1 week ago