Russell's Has Annual Revenue of $387,000 with Costs of $216,400

Multiple Choice

Russell's has annual revenue of $387,000 with costs of $216,400.Depreciation is $48,900 and the tax rate is 21 percent.The firm has debt outstanding with a market value of $182,000 along with 9,500 shares of stock that is selling at $67 a share.The firm has $48,000 of cash of which $29,500 is needed to run the business.What is the firm's EV/EBITDA ratio?

A) 5.57
B) 4.69
C) 3.39
D) 3.93
E) 6.20