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Marys current company has debt of 20 and EBITDA of 5. The firm under purchase consideration has debt of 4 and next year FCF (aka
- Marys current company has debt of 20 and EBITDA of 5. The firm under purchase consideration has debt of 4 and next year FCF (aka EBITDA) of 2. If Marys firm has a WACC of 10% and cost of equity of 12% ,and the new firms growth rate is 3% what is the price of purchase and Marys firms Debt to EBITDA ratio after purchase?
- 22 and 3.4
- 36 and 3.4
- 29 and 3.4
- 29 and 4
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Promoting Microfinance Challenges And Innovations In Developing Countries And Countries In Transition
Authors: R. Manos , J. Gueyie, J. Yaron
1st Edition
