Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 02, 2024

39. Company A has EBITDA of $4,500 and is purchased for 6x multiple in 2016, financed with $20,000 of debt. In 2019 the company has

image text in transcribed

39. Company A has EBITDA of $4,500 and is purchased for 6x multiple in 2016, financed with $20,000 of debt. In 2019 the company has $5,600 of EBITDA and is sold for the same 6x multiple. Assuming there is $15,000 of debt at the time of the sale, what is the equity return

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

Trade Ipos Online

Trade Ipos Online

Authors: Matthew D. Zito ,Matt Olejarczyk

1st Edition

0471443026, 978-0471443025

More Books

Students also viewed these Finance questions

Question

Which is not an ethical standard to follow when preparing and delivering a persuasive presentation? a. Accurately cite sources when the words are not your own. b. Respect sources of information by...

Answered: 1 week ago

Question

★★★★★

Fuentes Manufacturing Company uses a standard cost accounting system. In 2012, the company produced 28,000 units. Each unit took several pounds of direct materials and 1 standard hours of direct...

Answered: 1 week ago

Question

★★★★★

39. Company A has EBITDA of $4,500 and is purchased for 6x multiple in 2016, financed with $20,000 of debt. In 2019 the company has $5,600 of EBITDA and is sold for the same 6x multiple. Assuming...

Answered: 1 week ago

Question

★★★★★

A project manager is leading a project to build a bridge. The initial plan called for only car travel along the bridge. However, after a city council meeting, now the city wants a bike lane to be...

Answered: 1 week ago

Question

★★★★★

Answer the following Financial questions in Microsoft Excel. The Finance concept of Stocks and Bonds Valuation needs to applied, when answering the questions. Q 1 JW Corp has paid a dividend of...

Answered: 1 week ago

Question

★★★★★

1. Self Assessment You have prepared handouts, several charts, and a short video clip to support your speech. What steps should you take to make sure your presentation is effective? 2. Ethics...

Answered: 1 week ago

Question

★★★★★

1. while reviewing, you noticed an error in alex's pricing analysis that may result in discrepancies between stated costs to customer and actual costs that customers will be charged. how would you...

Answered: 1 week ago

Question

★★★★★

Daryl was talking with friends at a restaurant after work. He told them that he had been thinking of making a career change for a while, so he's finally enrolled himself into an allied health...

Answered: 1 week ago

Question

★★★★★

Childhood Disorders - PSY-431-OL01 Case Study Project: For this assignment, you will read a case study and offer diagnostic impressions and treatment suggestions. Directions: Based on the information...

Answered: 1 week ago

Previous Question Next Question