Compute range of EBITDA

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Reference no: EM131920108

1. You would like to compare? Ideko's profitability to its? competitors' profitability using the? EBITDA/sales multiple. Given? Ideko's current sales of $ 76.6 million, use the information in the? table,... ?, to compute a range of EBITDA for Ideko assuming it is run as profitably as its competitors.

A. This implies an EBITDA range of $ 12.179 million$12.179 millionto $ 14.018 million

B. This implies an EBITDA range of $ 9.269 million to $ 14.018 millionn.

C. This implies an EBITDA range of $ 9.269 million to $13.175 million

D. This implies an EBITDA range of $12.179 million to $13.175 million

2. McDaniels Company plans to issue 20-year bonds with annual interest payments and with 25 warrants attached.   The investment banker estimates that each warrant will have a value of $5.00. A similar straight-debt issue would require a 10% coupon. What coupon rate should be set on the bonds-with-warrants so that the package will sell for $1,000?

9.94%

8.53%

8.83%

4.13%

Reference no: EM131920108

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