Turnbull Company Had an EBIT of $247 Million in the Last

question 60

Multiple Choice

Turnbull company had an EBIT of $247 million in the last financial year. Its depreciation and amortisation expenses amounted to $84 million. The company has 135 million shares outstanding and a share price of $12.80. A competing company that is very similar to Turnbull has an enterprise value/EBITDA multiple of 5.40. Multiples analysis: What is the value of Turnbull company's debt? Round to the nearest million dollars.

• A) $121 million
• B) $165 million
• C) $97million
• D) $59 million

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Definitions:

Cash Inflows

The total amount of money being transferred into a business, typically from operational, financing, and investment activities.

Required Rate

The minimum annual rate of return that an investor expects to achieve on an investment.

After-tax Cash Inflows

The amount of cash generated from any business activity after accounting for taxes.

Scrap Equipment

Old or discarded machinery and equipment that has no further use and is usually sold for its material content.