Question
ABC Corporation is purchasing DEF Corp using an asset swap so that it is tax-free to the owners of DEF Corp. DEF's EBITDA is 228.4
ABC Corporation is purchasing DEF Corp using an asset swap so that it is tax-free to the owners of DEF Corp. DEF's EBITDA is 228.4 million and the price that ABC pays is 6 times EBITDA. If the owners of DEF Corp. have a tax rate of 23.0%, what is the equivalent price in millions if DEF is sold to a cash buyer?
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Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
