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PLEASE SHOW WORK Your firm currently has $180,000 in assets and $70,000 in debt. Financial records show the most recent EBITDA to be $50,000 and

PLEASE SHOW WORKimage text in transcribed

Your firm currently has $180,000 in assets and $70,000 in debt. Financial records show the most recent EBITDA to be $50,000 and recent the most net income to be $20,000. You (the entrepreneur) paid yourself a salary that is $10,000 higher than the current market rate. Based on the past growth of your firm and industry trends, you believe a profit multiple of 5 is appropriate. Find the value of the firm. QUESTION 2 Would you be willing to sell the firm for $400,000 based on your valuation? Yes No

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