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_2

Step: 3

blur-text-image_3

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 Socionomic Theory Of Finance

Authors: Robert R. Prechter

1st Edition

0977611256, 978-0977611256

More Books

Students also viewed these Finance questions