Options
- A
7.50
- B
8.25
-
8.87
Correct answer
- D
9.50
Why this is the answer
Enterprise Value (EV) represents the total value of a company’s operating assets and is calculated by adding equity value and total debt. In this case, EV equals Rs 200 crore plus Rs 84 crore, resulting in Rs 284 crore. The EV/EBITDA multiple is then calculated by dividing Rs 284 crore by EBITDA of Rs 32 crore. This gives a value of 8.87, which indicates how many times EBITDA investors are paying to acquire the company.
Test yourself for real
Take a full NISM Series X mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.