Hi guys ,
found this questionhttp://www.gmatpill.com/gmat-practice-t ... stion/1511
For part 1,
So for each company I divide the enterprise value by its revenue to find the EV/Revenue multiple,
so I get 9.25 for Cool Go and 1.85 , 1.9 , 3.43 and 1.56 for the other companies .
When I order the set of the numbers the median is 1.9 which is not in the range of 2x to 3x. So my answer was No.
For part 2,
Can I divide EBITDA by the EPS to find the # of outstanding shares , since EBITDA stands for earnings ? What difficulty level would you rate this question ?