hard · Investment Banking

An analyst is preparing a peer group analysis and notices that a comparable company has an Equity Value of $2,000M and a P/E multiple of 10.0x.

If the company's Net Income is $200M and its EBITDA is $400M, what is its EV/EBITDA multiple if it has $500M in net debt?

  1. 5.0x
  2. 3.75x
  3. 6.25x
  4. 7.5x

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