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3 years ago

Given the following information for Smith Company's Northern Division, what is the division's EBITDA margin?

Business

1 answer:

erma4kov [3.2K]3 years ago

4 0

Answer:

EBITDA margin is 55.58%

Explanation:

EBITDA margin is computed as;

= EBITDA / Total revenue

Where,

EBITDA = Earnings before interest and taxes + depreciation + amortization

EBITDA margin = ($18,112 + $5,000 + $1,422) / $44,140

EBITDA margin = $24,534 / $44,140

EBITDA margin = 55.58%

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4 years ago

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3 years ago

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Answer:

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Present value can be calculated by discounting the cash flows at the discount rate.

Present value can be calculated using a financial calculator:

Cash flow for year 1 = $820

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I hope my answer helps you

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4 years ago