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Simora [160]
2 years ago
10

A firm has 4,250 shares of stock outstanding with a market value of $16.65 a share, $64,800 of long-term debt with an interest r

ate of 7.5 percent, $21,900 of short-term debt, cash on hand of $5,200, sales of $213,000, costs of $126,200, and depreciation of $13,400. The tax rate is 35 percent. What is the enterprise value multiple
Business
1 answer:
liraira [26]2 years ago
6 0

Answer: 1.50

Explanation:

Baeed on the information given in the question, the enterprise value multiple would be calculated as:

= [(4,250 × 16.65) + 64,800 - 5,200] / (213,000 - 126,200)

= 130,362.5 / 86,800

= 1.50 times

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Answer:

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