An analyst studying Albion Industries determines that the average EV/EBITDA ratio for Albion's industry is 10. The analyst obtains the following information from Albion's financial statements:
EBITDA = ￡11,000,000
Market value of debt = ￡30,000,000
Cash = ￡1,000,000
Based on the industry's average enterprise value multiple, what is the equity value of Albion Industries?
A) ￡110,000,000.
B) ￡80,000,000.
C) ￡81,000,000.
Answer: C
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