Question
Forecasted EBITDA at the end of year 5 is 10 million, the average trading multiple for the industry is expected to be 4x EBITDA. Assume
Forecasted EBITDA at the end of year 5 is 10 million, the average trading multiple for the industry is expected to be 4x EBITDA. Assume the debit is pad off after 5 years, calculate the value of equity that will support a 22% IRR for the PE firm.
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
