A public companys share price as of the valuation date is $15/share. The company has 1 million shares outstanding. The company reported current debt of $500,000 and long-term debt of $1,300,000: What is the companys enterprise value, if it has cash of $600,000? Show the calculations and result (5 points): = $500,000 + $1,300,000= $1,800,000 = $1,800,000- $600,000= $1,200,000 =$1,200,000 + (15*1,000,000)= $16,200,000 The company reported EBITDA for the last 12-month period of $1,600,000 and the consensus among equity analysts that cover the companys stock is that the companys EBITDA for the next 12-month period will be 5% higher. Calculate the companys trailing and forward enterprise value/ EBITDA multiples. Show both calculations (5 points): EBITDA= $80,000 EV= $600,000 EBITDA multiple= EV/EBITDA EBITDA multiple= $600,000/$80,000= 7.5x

Using the projected next period growth of 5% and the forward multiple calculated in the previous step, determine the companys implied cost of capital. Show your calculations (5 points): Please answer!!

You are valuing a private company, PrivateCo, Inc., that is similar to, but much smaller than, the aforementioned public company. The private companys cost of capital is 6% higher than that of the public company, but the private companys EBITDA is expected to grow at 7% next year. Calculate the enterprise value/ EBITDA multiple that would be appropriate for the subject private company. Show your calculations (5 points): Please answer if possible!!