Exercises 1. What are the elements that make up sustainable value creation? 2. What is the capital structure? 3. What are the advantages of debt financing? 4. Mention the two classifications of multiples 5. What is the "value driver" in relative valuation? Mention two examples 6. What is the advantage of valuation by multiples?

Solve the following problems: 1. The driver of a company is its EBITDA in the relative valuation, based on the multiple P/EBITDA. The average value of comparable companies in the construction industry it is $450. The EBITDA value of comparable companies is $250. And the EBITDA of the Target company is $567. What is the value of the target company?

2. Company ABC has interest earned (financial assets) of $2,450. Obligations financials are $4,788. A book value of capital of $38,000 and a market value capital of $100,000. Calculate the following: a) Book value of the company b) Market value of the company

3. If the market price of a stock is $10 and the book value of the same company is $7.50, explain if the price is undervalued or overvalued and why.

4. In the previous exercise, ABC Company had sales of $80,000; net income of $7,000. Calculate the following multiples: a) Market value of the company to sales b) Market value of capital at net income c) Market value to book value of capital d) Market value to book value of the company

5. We have the following data for two companies in the commercial industry: