Calculate the Debt-To-EBITDA Ratio Given the Following Information

question 24

Multiple Choice

Calculate the debt-to-EBITDA ratio given the following information.
EBIT: $100.0m
D&A: $150.0m
Cash: $50.0m
Debt: $75.0m

• A)25%
• B)30%
• C)50%
• D)37.5%

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Definitions:

Price Change

A variation in the cost of goods or services over time, either increasing or decreasing based on market conditions.

Price Elasticity

Price elasticity measures how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified period.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high responsiveness.