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Jake Entertainment Corporation has three segments with revenue, operating income, and depreciation and amortization information (in...

Jake Entertainment Corporation has three segments with revenue, operating income, and depreciation and amortization information (in millions) as follows: Operating Depreciation Segment Revenue Income and Amortization Film Theme Park Video Game Totals $5,000 1,000 500 $1,500 320 175 $525 112 53 $6,500 $1,995 $690 The segment with the highest EBITDA as a percent of revenue is

A. Video Game

B. The Theme Park and Video Game segments have equal EBITDA as a percent of revenue.

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Answer #1
Film Theme park Video game
EBITDA 1500+525=2025 320+112 = 432 175+53 = 228
Revenue 5000 1000 500
EBITDA/revenue*100 40.5 43.2 45.6

So, Video game segment gives the highest EBITDA as a percent of revenue.

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