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
Homework Answers
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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