Question
Assume that a business has an EBIT of $10 million, interest expense of $2 million, and depreciation expense of $1 million. Furthermore, its market multiple
Assume that a business has an EBIT of $10 million, interest expense of $2 million, and depreciation expense of $1 million. Furthermore, its market multiple based on EBITDA as the value proxy is 6.5. What is the estimate of the business's equity value?
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Handbook Of The Economics Of Finance Corporate Finance Volume 1A
Authors: George M. Constantinides, M. Harris, Rene M. Stulz
1st Edition
0444513620, 978-0444513625
