The managers of Corines Candies like to use the EBITDA multiple to value the firm. EBITDA was approximately $10 million
At the end of 2011, Corine’s Candies Inc. had total shareholders’ equity of $13.8 million. In 2012, the company had net income of $5.2 million and paid out half this amount in dividends, resulting in shareholders’ equity at the end of 2012 of $16.4 million. Use the average amount of shareholders’ equity to determine Corine’s ROE for 2012.
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Question Posted: February 25, 2015 09:15:00