21. Greedy Hospital (GH) uses a 9X multiple of the most recent EBITDA to calculate its initial offer price for a clinic that is for sale. Altruistic Medical Center (AMC), GHs main competitor, uses an opportunity cost rate of 12%. Both GH and AMC view the clinic as a viable ongoing concern based on the same cash flow (EBITDA) assumptions. Which facility will likely offer the higher price for the clinic? [Remember, for a perpetuity (ongoing concern), the value of a cash flow (CF) = CF*(1/i), where i = the interest rate, discount rate, or opportunity cost rate.]

a. GH

b. AMC

c. They will likely offer the same price

d. Not enough information to determine this