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The projected free cash flows for Tommy's Pizzeria and Taco Restaurant for 2018 through 2021 are given in the table below. After 2021, Tommy's Pizzeria
The projected free cash flows for Tommy's Pizzeria and Taco Restaurant for 2018 through 2021 are given in the table below. After 2021, Tommy's Pizzeria and Taco Restaurant is expected to see its free cash flows increase at an annual rate of 5.0%. Projected Free Cash Flows Tommy's Pizzeria and Taco Restaurant YEAR 2018 2019 2020 2021 FREE CASH FLOW S 345,000 S 375,000 S 400,000 S 425,000 9. (3 pts.) Instead, at the end of 2020, Tommy decides to sell his restaurant. He has proven its success, so he is offered a price equal to the multiple customarily used for the restaurant industry in "Industry-Specific Multiples," discussed in Lesson 13. If his earnings before interest and taxes (EBIT) is S300,000 in 2020, how much is his restaurant worth? The projected free cash flows for Tommy's Pizzeria and Taco Restaurant for 2018 through 2021 are given in the table below. After 2021, Tommy's Pizzeria and Taco Restaurant is expected to see its free cash flows increase at an annual rate of 5.0%. Projected Free Cash Flows Tommy's Pizzeria and Taco Restaurant YEAR 2018 2019 2020 2021 FREE CASH FLOW S 345,000 S 375,000 S 400,000 S 425,000 9. (3 pts.) Instead, at the end of 2020, Tommy decides to sell his restaurant. He has proven its success, so he is offered a price equal to the multiple customarily used for the restaurant industry in "Industry-Specific Multiples," discussed in Lesson 13. If his earnings before interest and taxes (EBIT) is S300,000 in 2020, how much is his restaurant worth
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