Chevelle company has sales of $39,500, cost of $18,400, depreciation of $1,900 and interest expense of $1,400. its tax rate 35%. it has a stock valuation of $500,000 and debt borrowing of $100,000.
a) Construct an income statement;
b) What’s EBITDA?
c) What’s its Enterprise Value (EV)?
d) What’s its EV /EBITDA valuation?