A company has P/E of 20x, EV/EBITDA of 10x, interest expense of $20M (at 5% rate), $20M of depreciation, and market cap of $200M. What's the tax rate?

Question

IBPrep · Accepted Answer

05 = $400M. TEV = Debt + Equity = $400 + $200 = $600M.

A company has P/E of 20x, EV/EBITDA of 10x, interest expense of $20M (at 5% rate), $20M of depreciation, and market cap of $200M. What's the tax rate?

Answer

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