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What was the EV/EBITDA multiple Crosko actual paid to acquire Motor Inc. using EBITDA at 01.09.1995?  Use...

What was the EV/EBITDA multiple Crosko actual paid to acquire Motor Inc. using EBITDA at 01.09.1995?  Use the data: Operating Income $870 million, Depreciation & Amortization $498 million, and Crosko purchase price of $13.7 bln as the EV which includes Motor Inc. debt $300 million.

a. 3.2x

b. 6.9x

c. 10.0x

d. 20.0x

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Answer #1

EBITDA = operating income + depreciaiton and Amortization

= 870 + 498

= 1.368 Billion

EV/EBITDA = 13.7/1.368

= 10.0 times

correct answer is option C.

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