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