FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

34. An equity investor is considering purchasing a company which has $1,400 of EBITDA for a 6x multiple. The investor is willing to invest $3,000

image text in transcribed

34. An equity investor is considering purchasing a company which has $1,400 of EBITDA for a 6x multiple. The investor is willing to invest $3,000 equity. Assuming 3 years: from now EBITDA is $1,600 and the company is sold for a 6x multiple, what will be the equity return assuming no debt paydown

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Oxford Handbook Of State Capitalism And The Firm

The Oxford Handbook Of State Capitalism And The Firm

Authors: Mike Wright, Geoffrey T. Wood, Alvaro Cuervo-Cazurra, Pei Sun, Ilya Okhmatovskiy, Anna Grosman

1st Edition

0198837364, 978-0198837367

More Books

Students also viewed these Finance questions

Question

★★★★★
Jet fuel is the largest operating cost for Delta Air Lines. In 2015, Delta's CEO Richard Anderson announced that the firm was likely to save more than $2 billion during the year because of lower fuel...

Answered: 1 week ago

Question

★★★★★
22. Amro Mutual Fund has Rs 20 lakh available for investment in Government bonds, blue chips, speculative stocks, and gold. The expected annual return on these investments is given below: The...

Answered: 1 week ago

Question

★★★★★
Howdid Zeigarnik investigate the effect named for her? How does the phenomenon relate to the Lewinian concept of equilibrium?

Answered: 1 week ago

Question

★★★★★
Start Smart Preschool operates a not- for- profit morning preschool that operates nine months of the year. The preschool has 160 kids enrolled in its various programs. The preschools primary expense...

Answered: 1 week ago

Question

★★★★★
a. What is the yield of the following bond if interest (coupon) is paid annually? (Round to two decimal places.) Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1,000.00 9% 20 [...

Answered: 1 week ago

Question

★★★★★
5. Convert 111012 to decimal. Assume it is unsigned. 6. Solve for x in 2x 001000002 7. Convert 010110012 to decimal. Assume unsigned again.

Answered: 1 week ago

Question

★★★★★
Joan B.: "We also need to look at the entire approach to making information available. I think we should include Susan Martin in this meeting next week. Maybe she can help us to understand the...

Answered: 1 week ago

Question

★★★★★
Marya Callais, a citizen of California, was walking along a busy street in Tallahassee, Florida, where she has a vacation home, when a large crate flew off a passing truck and hit her, causing...

Answered: 1 week ago

Question

★★★★★
Devon Manufacturing produces a variety of products. Information taken from the company's accounting records at the end of the year is shown below. Beginning raw materials inventory Purchases of raw...

Answered: 1 week ago

Question

★★★★★
Activity 1: The Components of a Vector Open the Vector Addition simulation (https://phet.colorado.edu/en/simulation/vector-addition) and select the Explore 2D screen. The a few minutes to explore the...

Answered: 1 week ago

Question

★★★★★
Cody often opts to stay at the quite budget-friendly No-Frills Hotel chain when he travels. He feels strongly that all those extra amenities such as continental breakfast, complementary coffee in the...

Answered: 1 week ago

Question

★★★★★
1. LaunchPad for Real Communication offers key term videos and encourages selfassessment through adaptive quizzing. Go to bedfordstmartins.com/realcomm to get access to: LearningCurve Adaptive...

Answered: 1 week ago

Question

★★★★★
4. Take a look at your schools policy on plagiarism. Does your school clearly define what acts constitute plagiarism? How harsh are the punishments? Who is responsible for reporting plagiarism? How...

Answered: 1 week ago

Question

★★★★★
6. Give proper credit to sources and take responsibility for your speech

Answered: 1 week ago

Previous Question Next Question