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What is Sommers EV-EBITDA ratio

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Question - Sommers Industries has $3,900,000,000 in total assets-of which cash and equivalents total $70,000,000. Its balance sheet shows $500,000,000 in current liabilities-of which the notes payable balance totals $192,000,000. The firm also has $1,600,000,000 in long-term debt and $1,800,000,000 in common equity. It has 90 million shares of common stock outstanding, and its stock price is $30 per share. The firm's EBITDA totals $1,474,000,000. Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What is Sommers's EV/EBITDA ratio?

Reference no: EM133102476

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