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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
icon
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.
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
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 3 images

Blurred answer
Knowledge Booster
Stock Market Analysis
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning