Scrunchy Masks Corp. has just become public during the pandemic. Here is some random and...
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Scrunchy Masks Corp. has just become public during the pandemic. Here is some random and current information about the company: Shares outstanding 300,000 Share Price $4.50 Net Income $450,000 Tax Rate 30% Depreciation expense $100,000 Market Value of Debt $500,000 Cash $300,000 Interest Expense $20,000 A correction has just been made to depreciation, as it was actually meant to be recorded as $90,000. What is the current EV/EBITDA ratio after this correction has been made? Secondly, is this larger or smaller than the corrected P/E? (Work does NOT need to be shown) O 1.66, Smaller 2.03, Larger 2.76, Larger 2.06, Smaller
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