Lassiter Motors has a debt-equity ratio of 0.45 and total debt of$186,000. The firm's market-to-book ratio is 2.6. The earnings before interest and taxes is $69,200, interest is $26,400, depreciation and amortization total $87,100, and the tax rate is 34 percent. What is the firm's EV to EBITDA ratio if the firm has $31,000 in cash?

A. 7.34

B. 7.87

C. 6.01

D. 6.38

E. 5.47

Answer rating: 100% (QA)

BV of equity debtDE 18600004541333333 MV of equityt BV ... View the full answer