Answer: 11.2

## Calculation Explanation **Step 1: Calculate Enterprise Value (EV)** Enterprise Value = Market value of debt + Market value of common equity - Cash and investments EV = 310 + 290 - 40 = 560 **Step 2: Calculate EV/EBITDA ratio** EV/EBITDA = 560 / 50 = 11.2 **Step 3: Verify the answer** The calculation confirms that the EV/EBITDA ratio is 11.2, which corresponds to option A. **Key Formula:** - **Enterprise Value (EV)** = Market Value of Debt + Market Value of Equity - Cash & Equivalents - **EV/EBITDA** = Enterprise Value ÷ EBITDA

Author: LeetQuiz Editorial Team