Question
Conglomerate XYZ has a market value of $150 million. The firm has the following two divisions: EBITDA Oil and Gas $35 million Transportation $20 million
Conglomerate XYZ has a market value of $150 million. The firm has the following two divisions:
| EBITDA | |
| Oil and Gas | $35 million |
| Transportation | $20 million |
Suppose you have collected the following data for pure players in each division:
| EBITDA | Market Value | |
| Oil and Gas Pure Player | $150 million | $450 million |
| Transportation Pure Player | $225 million | $900 million |
What is the imputed or intrinsic value of the conglomerate?
Group of answer choices
$140 million
$185 million
$375 million
$1,350 million
$95 million
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
7th Edition
0137858515, 9780137858514
