A firm has 5,000 shares of stock outstanding,sales of $6,000,an enterprise value of $5 million and an EBITDA of 1 million. What is the enterprise value multiple?
A) 2.2
B) 2.4
C) 3.0
D) 4.0
E) 5.0

Question

Quizplus · Accepted Answer

The enterprise value multiple is calculated as Enterprise Value / EBITDA. Here, it is $5,000,000 / $1,000,000 = 5.0.

A Firm Has 5,000 Shares of Stock Outstanding,sales of $6,000,an