A Firm Has 4,250 Shares of Stock Outstanding with a Market

question 40

Multiple Choice

A firm has 4,250 shares of stock outstanding with a market value of $16.65 a share,$64,800 of long-term debt with an interest rate of 7.5 percent,$21,900 of short-term debt,cash on hand of $5,200,sales of $213,000,costs of $126,200,and depreciation of $13,400.The tax rate is 35 percent.What is the enterprise value multiple?

• A)1.50 times
• B)1.67 times
• C)2.33 times
• D)2.18 times
• E)1.92 times

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Definitions:

Americans

Citizens or nationals of the United States of America, a country located primarily between Canada and Mexico.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period, serving as a broad measure of economic activity.

Health Care

The organized provision of medical services to individuals or communities for the purpose of maintaining, promoting, monitoring, or restoring health.

GDP

GDP, or Gross Domestic Product, is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.