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Vlad1618 [11]
3 years ago
11

the market value of the equity of Ginger, Inc., is $710,000. The balance sheet shows $45,600 in cash and $227,800 in debt, while

the income statement has EBIT of $102,800 and a total of $164,600 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.) Enterprise value−EBITDA multiple times
Business
1 answer:
KengaRu [80]3 years ago
7 0

Answer:

3.34 times

Explanation:

Ginger incorporation has a market valu of equity of $710,000

The debt is $227,800

Cash is $45,600

EBIT is $102,800

The first step is to find the enterprise value

= market capitalization + debt -cash

= $710,000 +$227,800 - $45,600

= $937,800-$45,600

= $892,200

The EBITDA can be calculated as follows

= EBIT + depreciation and amortization

= $102,800 + $164,600

= $267,400

Therefore the enterprise value-EBITDA can be calculated as follows

= 892,200/267,400

= 3.34 times

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1. Explain how 'Returns to Scale' and 'Law of Diminishing Returns' would affect cost in a manufacturing company.​
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2 years ago
Kingbird Windows manufactures and sells custom storm windows for three-season porches. Kingbird also provides installation servi
Umnica [9.8K]

Answer:

Kingbird Windows

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Credit Unearned Sales Revenue $1,940

To record the receipt of cash from customer.

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Credit Sales Revenue $1,940

To record the sale of windows.

Debit Inventory $1,050

Credit Cost of Goods Sold $1,050

To record the cost of goods sold.

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Credit Service Revenue $530

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yeloe corporation sells 400 shares of common stock being held as an investment. The shares were acquired six months ago at a cos
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Answer:

Entry is given below

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Loss on sale                  $8,000

Shares                                               $24,000

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