Question
68. XZY Inc. is purchasing QWE Inc. using a asset swap so that it's tax-free to the owners of QWE Inc. QWE Inc.'s EBITDA is
68.
XZY Inc. is purchasing QWE Inc. using a asset swap so that it's tax-free to the owners of QWE Inc. QWE Inc.'s EBITDA is 187.52 mil and the price that XYZ Inc. pays is 4 times EBITDA. If the owners of QWE Inc. has a tax rate of 21.04%, what would be the price in millions is QWE Inc. is sold to a cash buyer?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Public Finance And Public Policy
Authors: Jonathan Gruber
2nd Edition
0716766310, 9780716766315
