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You are trying to find undervalued firms, using EV/EBITDA ratios. Which of the following companies is most likely to be undervalued? (Undervalued = Stock you

You are trying to find undervalued firms, using EV/EBITDA ratios. Which of the following companies is most likely to be undervalued? (Undervalued = Stock you would buy)

A. Stock with low EV/EBITDA, High Tax Rate, High Return on capital

B. Stock with high EV/EBITDA, High Tax Rate, Low Return on capital

C. Stock with low EV/EBITDA, Low Tax Rate, High Return on capital

D. Stock with high EV/EBITDA High Tax Rate, High Return on capital

E. Stock with low EV/EBITDA, High Tax Rate, Low Return on capital

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