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4. Use this income statement to determine a fair market value for the following methods Current year Total Revenue 70,000,000 Depreciation and Amortization 7,000,000 Operating
4. Use this income statement to determine a fair market value for the following methods Current year Total Revenue 70,000,000 Depreciation and Amortization 7,000,000 Operating expenses 50,000,000 EBIT 13,000,000 Interest expense on debt 5,000,000 EBT 8,000,000 25% tax 2,000,000 Net Profit 6,000,000 + Depreciaiton and Amortization 7,000,000 Estimated Cash 13,000,000 a. Revenue multiplier if similar companies are selling for 2x revenue b. EBITDA multiple if similar companies are selling for 6x c. Price/Earnings ratio of 24x profit d. Discounted cash flow if discount rate is 10%
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