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.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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.
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.
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