Cervil had an EBIT of $247 million in the last fiscal year. Its depreciation and amortization expenses amounted to $84 million. The firm has 135 million shares outstanding and a share price of $12.80. A competing firm that is very similar to Cervil has an enterprise value/EBITDA multiple of 5.40. What is the value of Cervil's debt? (Round to the nearest million dollars.)
A) $121 million
B) $165 million
C) $97 million
D) $59 million
Correct Answer:
Verified
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