A company had total revenues of $42 million, operating margin of 20.2%, and depreciation and amortization expense of $15 million over the trailing twelve months. The company currently has $295 million in total debt and $54 million in cash and cash equivalents. The company's shares are currently trading at $34.5 per share and there are 7 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place.
A company had total revenues of $42 million, operating margin of 20.2%, and depreciation and amortization expense of $15 million over the trailing twelve months. The company currently has $295 million in total debt and $54 million in cash and cash equivalents. The company's shares are currently trading at $34.5 per share and there are 7 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
Related questions
Question
#10!
![A company had total revenues of $42 million, operating margin of 20.2%, and depreciation and amortization expense of $15 million over the trailing twelve
months. The company currently has $295 million in total debt and $54 million in cash and cash equivalents. The company's shares are currently trading at
$34.5 per share and there are 7 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffcb4b124-0bae-4a71-ac36-265cc0494b9b%2Fceaf4443-3d46-420d-bfd2-66b85f8a52ed%2Fhqp3by_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company had total revenues of $42 million, operating margin of 20.2%, and depreciation and amortization expense of $15 million over the trailing twelve
months. The company currently has $295 million in total debt and $54 million in cash and cash equivalents. The company's shares are currently trading at
$34.5 per share and there are 7 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Intermediate Financial Management (MindTap Course…](https://www.bartleby.com/isbn_cover_images/9781337395083/9781337395083_smallCoverImage.gif)
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Intermediate Financial Management (MindTap Course…](https://www.bartleby.com/isbn_cover_images/9781337395083/9781337395083_smallCoverImage.gif)
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning