Answer:
3.34 times
Explanation:
The market value of skipper incorporation is $720,000
The balance sheet shows a cash of $46,400 and debt of $230,700
The income statement has an EBIT of $103,700
The depreciation and amortization is $166,900
The first step is to calculate the enterprise value
= Market capitalization + debt - cash
= $720,000 + $230,700 - $46,400
= $904,300
The EBITDA can be calculated as follows
= EBIT + depreciation and amortization
= $103,700 + $166,900
= $270,600
Therefore the enterprise value-EBITDA can be calculated as follows
= 904,300/270,600
= 3.34 times
