Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Company A is choosing between two different depreciation methods to use to maximize their EBITDA. They are currently choosing between the double-declining balance method

image text in transcribed
6. Company A is choosing between two different depreciation methods to use to maximize their EBITDA. They are currently choosing between the double-declining balance method and the straight-line method. Which depreciation method would maximize their EBITDA? a) Double-declining balance method b) Straight-line depreciation method c) Either depreciation method yields the same EBITDA 7. Companies with a higher PEG ratio are considered ? a) Undervalued b) Overvalued c) At fair value 8. Company X has 10x EV/EBITDA multiple, 30PE ratio, $12.00EPS,$300M revenue and $100M EBITDA. If you were given the mean EV/EBITDA multiple for Company X's peer group at 15x. What would you approximate Company X 's enterprise value to be? a) $1,500M b) $3,000M c) $4,500M 9. Generally, the market value of a business is than the book value on their balance sheet? a) More b) Less c) Equal

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

De Gruyter Handbook Of Personal Finance

Authors: Grable, John E., Chatterjee, Swarn

1st Edition

ISBN: 3110727498, 978-3110727494

More Books

Students also viewed these Finance questions

Question

56.If then nd E(X) and V(X) by differentiating a. MX(t) b. RX(t)

Answered: 1 week ago