Answered: A company has 200mm of debt, 50mm of…

A company has 200mm of debt, 50mm of cash, 25mm shares of stock trading at $10. It has operating income (EBIT) of 40mm and D&A of 10mm. What is EV/EBITDA and debt/EBITDA?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 12P: The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of...

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Question

A company has 200mm of debt, 50mm of cash, 25mm shares of stock trading at $10.

It has operating income (EBIT) of 40mm and D&A of 10mm. What is EV/EBITDA and debt/EBITDA?

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