ZuoTi.Pro
Question

Russell's has annual revenue of $387,000 with costs of $216,400


Russell's has annual revenue of $387,000 with costs of $216,400. Depreciation is $48,900 and the tax rate is 21 percent. The firm has debt outstanding with a market value of $182,000 along with 9,500 shares of stock that is selling at $67 a share. The firm has $48,000 of cash of which $29,500 is needed to run the business. 


What is the firm's EV/EBITDA ratio?

business   finance   
3 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Enterprise value = Market value of debt + Market value of equity - Cash = 182000 + (9500*67) - 48000 770500
EBITDA = Annual revenue - Costs = 387000 - 216400 170600
EV/EBITDA ratio = 770500 / 170600 4.52
0 0
Add a comment
Know the answer?
Add Answer to:
Russell's has annual revenue of $387,000 with costs of $216,400
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 10. Problem 4.10 (M-B, SHARE PRICE, and EV-EBITDA) You are given the following information: Stockholders' equity...

    10. Problem 4.10 (M-B, SHARE PRICE, and EV-EBITDA) You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $3.25 billion, price/earnings ratio = 22, common shares outstanding = 180 million, and market/book ratio = 1.6. The firm's market value of total debt is $6 billion, the firm has cash and equivalents totaling $250 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not...

  • You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $4 billion

    You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $4 billion, price/earnings ratio = 21.5, common shares outstanding = 24 million, and market/book ratio = 1.9. The firm's market value of total debt is $4 billion; the firm has cash and equivalents totaling $220 million; and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to...

  • You are given the following information: Stockholders' equity as reported on the firm's balance sheet =...

    You are given the following information: Stockholders' equity as reported on the firm's balance sheet = $4 billion, price/earnings ratio = 8.5, common shares outstanding = 170 million, and market/book ratio - 1.8. The firm's market value of total debt is $5 billion, the firm has cash and equivalents totaling $320 million, and the firm's EBITDA equals $1 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to...

  • Edelman Engines has $18 billion in total assets — of which cash and equivalents total $110...

    Edelman Engines has $18 billion in total assets — of which cash and equivalents total $110 million. Its balance sheet shows $2.7 billion in current liabilities — of which the notes payable balance totals $0.83 billion. The firm also has $9 billion in long-term debt and $6.3 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $36 per share. The firm's EBITDA totals $1.62 billion. Assume the firm's debt is priced...

  • Edelman Engines has $18 billion in total assets — of which cash and equivalents total $110...

    Edelman Engines has $18 billion in total assets — of which cash and equivalents total $110 million. Its balance sheet shows $2.7 billion in current liabilities — of which the notes payable balance totals $1.14 billion. The firm also has $8.1 billion in long-term debt and $7.2 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $38 per share. The firm's EBITDA totals $1.482 billion. Assume the firm's debt is priced...

  • Edelman Engines has $20 billion in total assets of which cash and equivalents total $80 million....

    Edelman Engines has $20 billion in total assets of which cash and equivalents total $80 million. Its balance sheet shows $2 billion in current liabilities of which the notes payable balance totals $1.14 billion. The firm also has $10 billion in long-term debt and $8 billion in common equity. It has 400 million shares of common stock outstanding, and its stock price is $30 per share. The firm's EBITDA totals $1.8 billion. Assume the firm's debt is priced at par,...

  • Edelman Engines has $2 billion in total assets of which cash and equivalents total $80 million....

    Edelman Engines has $2 billion in total assets of which cash and equivalents total $80 million. Its balance sheet shows $0,4 billion in current liabilities of which the notes payable balance totals $0.9 billion. The firm also has $0.9 billion in long-term debt and $0.7 billion in common equity. It has 700 million shares of common stock outstanding, and its stock price is $22 per share. The firm's EBITDA totals $2.31 billion. Assume the firm's debt is priced at par,...

  • You are given the following information: Stockholders' equity as reported on the firm’s balance sheet =...

    You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $5.5 billion, price/earnings ratio = 10, common shares outstanding = 210 million, and market/book ratio = 2.7. The firm's market value of total debt is $7 billion, the firm has cash and equivalents totaling $330 million, and the firm's EBITDA equals $3 billion. 1- What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer...

  • Please show any and all work or sub-calculations. A firm's EV / EBITDA ratio has most...

    Please show any and all work or sub-calculations. A firm's EV / EBITDA ratio has most recently (2018) been 7.8 but has grown as indicated in the below table since 2014. EBITDA over that same timeframe is given in the table also. An analyst wants to estimate the target price of the stock one year in the future. The analyst estimates the company's LT Debt in one year to be $1,400,000 and cash at $75,000. If 50,000 shares of stock...

  • A company has $20 million in assets and a total asset turnover ratio of 2. Its...

    A company has $20 million in assets and a total asset turnover ratio of 2. Its costs are equal to 30% of sales. The firm has ROE of 20% and a NPM of 8%. Assume the firm doesn’t have any preferred stock. If the firm has $2 million in cash and Market Value of Equity to Book Value of Equity (M/B) is 3.5, what is its EV/EBITDA? Now assume that the industry average for EV/EBITDA is 3. If the firm...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT