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ololo11 [35]
3 years ago
13

The market value of the equity of Hudgins, Inc., is $645,000. The balance sheet shows $53,000 in cash and $215,000 in debt, whil

e the income statement has EBIT of $91,000 and a total of $157,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
2 answers:
allsm [11]3 years ago
8 0

Answer:

It is 3.25 times

Explanation:

EBITDA Multiple = Enterprise Value/ EBITDA

Where EBITDA =  EBIT+Depreciation & Amortization

              =  $91,000+$157,000

              =$248,000

Enterprise Value (EV) =  Market value of the equity +Debt-Cash and Cash Equivalent

EV= $645,000+$215,000-$53,000

    =$807,000

Hence, EBITDA Multiple = $807,000/$248,000

                                        =3.25 times

EBITDA Multiple is used to compares a company’s Enterprise Value to its annual EBITDA.

BabaBlast [244]3 years ago
8 0

Answer: 1,000,000

Explanation:

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Products is a manufacturer of large flower pots for urban settings. The company has these​ standards:
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Answer:

Results are below.

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Fosnight Enterprises prepared the following sales​ budget: Month Budgeted Sales March April May June The expected gross profit r
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The question is incomplete as the figures are missing. The complete question is,

Fosnight Enterprises prepared the following sales​ budget:

Month       Budgeted Sales

March         $6,000

April            $13,000

May             $11,000

June            $20,000

The expected gross profit rate is  20​% and the inventory at the end of February was  $7,000.  Desired inventory levels at the end of the month are  30​%  of the next ​month's cost of goods sold.  What are the total purchases budgeted for May?

Answer:

Purchases - May = $10960

Explanation:

To calculate the total value of purchases that are budgeted for May, we first need to calculate the cost of goods sold and the opening and closing inventory for May.

As the gross profit margin is 20%, the cost of goods sold will be 80% of sales.

Cost of goods sold for May = 0.8 * 11000 = $8800

Cost of goods sold for June = 0.8 * 20000 = $16000

Opening inventory - May = 8800 * 0.3  = $2640

Closing Inventory - May = 16000 * 0.3  = $4800

Purchases = Closing Inventory + Cost of Goods Sold for the month - Opening Inventory

Purchases - May = 4800 + 8800 - 2640

Purchases - May = $10960

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