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

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