Adler Industries has $3,125,000,000 in total assets of which cash and equivalents total $75,000,000. Its balance sheet shows $425,000,000 in current liabilities of which the notes payable balance totals $187,500,000. The firm also has $1,200,000,000 in long-term debt and $1,500,000,000 in common equity. It has 80 million shares of common stock outstanding, and its stock price is $25 per share. The firm's EBITDA totals $1,656,250,000. Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What is Adler's EV/EBITDA ratio? (Note: You may want to refer to the Summary of Ratios worksheet in Module 1 on the course's canvas website.) a. 2.00 b. 2.55 c. 3.00 d. 3.44 4.00

Adler Industries has $3,125,000,000 in total assets of which cash and equivalents total $75,000,000. Its balance sheet shows $425,000,000 in current liabilities of which the notes payable balance totals $187,500,000. The firm also has $1,200,000,000 in long-term debt and $1,500,000,000 in common equity. It has 80 million shares of common stock outstanding, and its stock price is $25 per share. The firm's EBITDA totals $1,656,250,000. Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What is Adler's EV/EBITDA ratio? (Note: You may want to refer to the Summary of Ratios worksheet in Module 1 on the course's canvas website.) a. 2.00 b. 2.55 c. 3.00 d. 3.44 4.00

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

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