Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

begin{tabular}{lr} Assumptions hline Tax Rate & 30% Discount Rate & 11% Perpetual Growth Rate & 5% EVIEBITDA Multiple & 8.5x

image text in transcribed

image text in transcribed

\begin{tabular}{lr} Assumptions \\ \hline Tax Rate & 30% \\ Discount Rate & 11% \\ Perpetual Growth Rate & 5% \\ EVIEBITDA Multiple & 8.5x \\ Current Price & 19.50 \\ Shares Outstanding & 30,000 \end{tabular} Calculating terminal value and intrinsic value Please use the attached Excel file to answer the following questions. Business_Valuation_Modeling_Assessment File.xlsx 20 Review Later Calculate the intrinsic enterprise value using the average of terminal values derived from the EV/EBITDA multiple and perpetual growth methods. 387,294 451,512 485,416 421,684

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

Essential Personal Finance A Practical Guide For Students

Authors: Lien Luu, Jonquil Lowe, Jason Butler, Tony Byrne

1st Edition

1138692956, 978-1138692954

More Books

Students also viewed these Finance questions

Question

=+a. What is nominal GDP for each of these three years?

Answered: 1 week ago