A privately held business has the same EBITDA as a publicly traded one. It is assumed that

Question:

A privately held business has the same EBITDA as a publicly traded one.

It is assumed that the liquidity discount is 25 percent. What theoretically should be the value of the privately held business if the publicly traded one is worth $1,500,000?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Entrepreneurial Financial Management An Applied Approach

ISBN: 9781000650488

5th Edition

Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman

See More Books

Question Posted: May 12, 2024 08:13 AM

See More Questions

Give Correct ANSWERS Human-Computer Interaction (a) If you had been one of the original inventors of the WIMP interface, and engineers on the technical team had been sceptical about the advantages...
1. A firm consists of 600 acres of land, of which 500 acres will be planted with corn, soybeans, and wheat according to this condition: -At least half of the planted acreage should be in corn - No...
Please Summarize this article about Communicating competitive information,and Applying Game Theory To Managing Price Competition. Pricing Strategies Course -No longer than 400 words. Like any other...
Listed below are measured amounts of caffeine (mg per 12 oz of drink) obtained in one can from each of 20 brands (7-UP, A&W Root Beer, Cherry Coke, . . . , Tab). Are the statistics representative of...
For each family in Exercise 3.28, describe the natural parameter space. In Exercise 3.28 Show that each of the following families is an exponential family. (a) Normal family with either parameter or...
From time to time, there have been attempts to place a value on the human assets of a business in order to derive a figure that can be included on the statement of financial position. Do you think...
Identify leadership characteristics that you would like to develop within yourself, and examine if these qualities promote inclusion.
Police Department Budget. The police chief of the Town of Meridian submitted the following budget request for the police department for the forthcoming budget year 201112. Upon questioning by the...
Entity A is a listed company in Hong Kong specializing in sanitary supplies for hospitals and supplies. It has buildings costing $1,000,000, depreciated at 4.00% annually by the straight-line method....
Is it possible for an entrepreneur to experience a reduction in wealth when a business is sold even though the value of the business is much greater than the amount invested? Under what conditions...
If a transaction took place three years ago, why would it not necessarily be applicable to a business sale that is taking place today?
Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted trial balance information for the year ended...
17. S T D -3 -2 graph of glx) 2 The graph of the continuous function g is shown above for -46x4. The Function g is twice differentiable, except at x=0. let & be the function with flo1=-2 and f'(x) =...
Tim works for HydroTech, a manufacturer of high-pressure industrial water pumps. He reports directly to the CFO, and she has asked him to calculate HydroTech's WACC. He has gathered the following...
You are appraising a 15,450 square foot (SF) building and using the Cost Approach. The base cost is $50/SF, the local multiplier is 1.05, the current cost multiplier is 0.92. The land value is...
How do you manage global and international teams? What would you do different?
Your friend is super excited about the results of their study! They examined whether different parenting styles [A] resulted in differences in anxiety levels among children. The different levels (a)...
Barton Simpson, the chief financial officer of Broadband Inc. could hardly believe the change in interest rates that had taken place over the last few months. The interest rate on A2 rated bonds was...
As economic conditions change, how do banks adjust their asset portfolio?
Question Help Runaround Corporation sells running shoes and during January they ran production machines for 22,000 hours total and incurred $10,000 in maintenance costs. During July they ran...
Exercise 8-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 16,000 units) folllows. 3,280,000 Fixed Budget Sales (16,000 units X $205 per unit) Costs Direct...
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be...

A privately held business has the same EBITDA as a publicly traded one. It is assumed that

Question:

Step by Step Answer:

To calculate the theoretical value of the ...View the full answer

Entrepreneurial Financial Management An Applied Approach

Students also viewed these Business questions