revenues                        12500
operating expenses      11000
depreciation                   2000
ebit                                 -500
interest expenses           1000
taxable income             -1500
taxes                                0
net income                     -1500

The firm has a negative book value of equity and negative net income. The firm's average interest rate on the debt on its books is 10%(this is the interest expense divided by the face value of the debt,which is entirely in the form of 10 year corporate bonds). The bonds are trading at a 15% discount on face value.

the average value/ebitda mutiple for other cellular firm is 10.
the value of equity in the firm, based upon the valution of comparable firm is closest:
a. 5500
b.6000
c.6250
d.6500

求高人解答·