Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 08, 2024

If a company had an EBITDA of 6% of sales of $100,000,000 and a valuation multiple of 5X, what would be the growth in the

If a company had an EBITDA of 6% of sales of $100,000,000 and a valuation multiple of 5X, what would be the growth in the value of the company if it grew sales to $115,000,000 and EBITDA of 7% with no other changes?

The answer is $10,250,000, but I would like to know how to solve it. Please and Thank you!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

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

Entrepreneurial Finance Venture Capital Deal Structure And Valuation

Authors: Janet Kiholm Smith, Richard L. Smith

2nd Edition

1503603210, 978-1503603219

More Books

Students also viewed these Finance questions

Question

★★★★★

A residential heat pump has a coefficient of performance of 2.4. How much heating effect, in Btu/h, will result when 5 hp is supplied to this heat pump? Reservoir QH HP 5 hp COP-2.4 Reservoir

Answered: 1 week ago

Question

★★★★★

7. Nursing research is inextricably linked to the professions mandate to protect the public and promote the best possible patient outcomes.

Answered: 1 week ago

Question

★★★★★

Evaluation documentation: What documentation is available that shows the negotiation of purposes and implementation of designs, procedures, data, and outcomes?

Answered: 1 week ago

Question

★★★★★

Use the information for Jones Company as presented in E8-23. Jones is planning to factor some accounts receivable at the end of the year. Accounts totaling $25,000 will be transferred to Credit...

Answered: 1 week ago

Question

★★★★★

A network technician is looking at leaf layer access switches of a SDN . What are these implemented as ? A . LER B . FCoE C . ToR D . SAWs

Answered: 1 week ago

Question

★★★★★

The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The companys present...

Answered: 1 week ago

Question

★★★★★

What are the role of supervisors ?

Answered: 1 week ago

Question

★★★★★

Cheyenne Vision Inc. opened for business on Jan 1, and uses a perpetual inventory system. During January, the company had the following purchases and sales for one of its products: Purchases Sales...

Answered: 1 week ago

Question

★★★★★

A cube with edge length L = 0.25 m and density Q = 0.88103 kg/m floats in equilibrium in a liquid of density = 15103 kg/m3, with the top of the cube a distance d above the liquid's surface, as shown...

Answered: 1 week ago

Question

★★★★★

Hill Corp. had 600,000 shares of common stock outstanding on January 1, issued 900,000 shares on July 1, and had income applicable to common stock of $1,050,000 for the year ending December 31, 2010....

Answered: 1 week ago

Question

★★★★★

7.1 A mammography center performs eleven different procedures. The volume of each procedure during an eight-month period and the standard hours per procedure are shown in Table EX 7.1. Table EX 7.1...

Answered: 1 week ago

Question

★★★★★

Who should be in charge of orienting new employees at the Jungle Gym? Why? Jason was excited about his first day of work at Jimmys Jungle Gym. As a second-year kinesiology student, this job would...

Answered: 1 week ago

Question

★★★★★

What possible legal liabilities is the company facing? Why? Jason was excited about his first day of work at Jimmys Jungle Gym. As a second-year kinesiology student, this job would provide Jason with...

Answered: 1 week ago

Question

★★★★★

In groups of 3-or 4, prepare a new student orientation program for your campus. How long would the orientation program be, and who would be involved? What would be included before, during, and after...

Answered: 1 week ago

Previous Question Next Question