1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
soldi70 [24.7K]
3 years ago
12

The market value of the equity of Hudgins, Inc., is $594,000. The balance sheet shows $33,000 in cash and $204,000 in debt, whil

e the income statement has EBIT of $105,000 and a total of $149,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company
Business
1 answer:
Naddika [18.5K]3 years ago
8 0

Answer:

3.01 times

Explanation:

Calculation for the enterprise value-EBITDA multiple for this company

First step is to calculate for the enterprise value using this formula

Enterprise value = Market capitalization + Debt−Cash

Let plug in the formula

Enterprise value = $594,000 + 204,000−33,000

Enterprise value = $765,000

Second step is find the EBITDA using this formula

EBITDA = EBIT + Depreciation and Amortization

Let plug in the formula

EBITDA = $105,000 + 149,000

EBITDA = $244,000

Third step is to calculate for the enterprise value-EBITDA multiple using this formula

Enterprise value-EBITDA multiple = Enterprise value /EBITDA

Let plug in the formula

Enterprise value-EBITDA multiple=$765,000 / $254,000

Enterprise value-EBITDA multiple = 3.01 times

Therefore the enterprise value-EBITDA multiple for this company will be 3.01 times

You might be interested in
The following data were accumulated for use in reconciling the bank account of Wolfpack Bread Inc. for August 20Y9:
Marizza181 [45]

Answer:

Adjusted bank account balance = Adjusted cash book balance = $34,500

Explanation:

Note: The correct requirement of this question is actually as follows:

Prepare a bank reconciliation.

It is not the ones erroneously stated in the question.

The bank reconciliation can now be prepared as follows:

Wolfpack Bread Inc.

Bank Reconciliation

August 31, 20Y9

Statement of Adjusted Bank Account Balance  

<u>Details                                                                       Amount ($)  </u>

Cash balance according to bank statement              33,580

Add:

Deposit in transit, not recorded by bank                    14,260

Less:

Checks outstanding                                                  <u>   (13,340)  </u>

Adjusted bank account balance                            <u>    34,500  </u>

Statement of Adjusted Cash Book Balance  

<u>Details                                                                       Amount ($)   </u>

Cash balance according to Wolfpack                         34,437

Add:

Check error ($762 - $276)                                              486

Less:

Bank service charges                                                     (144)

Other reconciling items (w.1)                                      <u>   (279)  </u>

Adjusted cash book balance                                    <u>  34,500  </u>

<u>Working:</u>

w.1: Other reconciling items = Cash balance according to Wolfpack + Check error ($762 - $276) - Bank service charges - Adjusted bank account balance = $34,437 + 486 - 144 - $34,500 = $279

7 0
2 years ago
An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? W
Ganezh [65]

Answer:

 B. No; The IRR is less than the required return by about 1.53 percent

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator:

Cash flow in year zero = -$42,000

Cash flow in year one = 15,300

Cash flow in year two = 28,400

Cash flow in year three = 7,500 

IRR = 11.47%

A project should be chosen if the IRR is greater than the required return

The IRR is less than the required return so the project should be rejected.

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

6 0
3 years ago
Nibbles pet food corporation is in the process of developing its new market strategy. the marketing team has already established
Semmy [17]

The marketing team need to <u>"create a promotion strategy to increase customer awareness."</u>


Promotion is the point at which a business chooses which types of communication it needs to use in their marketing plan. Research is done that points of interest statistical surveying, division, and spending plan. Huge organizations may complete a national crusade, particularly if the brand is as of now well-known to the purchaser. Littler organizations, with less assets, may utilize coordinate offering until the point when they have a bigger spending plan for advertising.

5 0
3 years ago
Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or l
Hunter-Best [27]

Answer:

1.Common Stocks Issues and Repurchases

2.Preference Stocks Issues and Repurchases

3.Dividends Declared

Explanation:

Common Stocks Issues and Repurchases

Common Stockholders have voting rights. The movement in the Stocks must be presented separately in the Statement of Changes in Equity.

Preference Stocks Issues and Repurchases

Preference Stockholders do not have voting rights. The movement in the Stocks must be presented separately in the Statement of Changes in Equity.

Dividends Declared

Dividends Paid are not included in Profit and Loss but in Statement of Changes in Equity.

Payment of Dividends adjusts the Retained Earnings Amount in Statement of Changes in Equity.

5 0
3 years ago
If a country's GDP is $10 billion and its population is 250,000, what is<br> its per capita GDP?
ruslelena [56]

Answer:

4000

Explanation:

7 0
3 years ago
Other questions:
  • A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable costs are $50 per unit
    6·1 answer
  • Your friend Amanda suffers from a condition that reduces her blood's ability to carry oxygen. Which of the following is the name
    8·2 answers
  • A business purchases a vehicle for $35,000. Since the vehicle was advertised for $40,000 the company decided to record the asset
    10·1 answer
  • Assume the Residential Division of KappyKappy Faucets had the following results last​ year: Net sales revenue $16,320,000 Operat
    9·1 answer
  • Suppose Paul has chosen a combination of two goods, A and B, such that the marginal utility per dollar spent for good A (MU A/P
    11·1 answer
  • Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will mai
    8·1 answer
  • According to the washington post article the downsides of cheap corn, farmers' 2014 crop revenues were down from prior years, de
    7·1 answer
  • Staff-level briefings are conducted by the supervisor to introduce co-workers, clarify tasks, define the scope of work, describe
    10·1 answer
  • 3.1.2 Give an example of taxes on products.​
    11·1 answer
  • If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods?.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!