Using the information in the table, answer the questions Industry average EV to EBITDA multiple 6 5 x Company ABC data EBITDA (normalized) 40m Market value of debt 4 8m 1 What is ABC company value (use the market based approach) 2 What is the ABC companys equity value ...

The Answer is in the image, click to view ...

[Solved] Using the information in the table, answe

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 09, 2024

Using the information in the table, answer the questions: Industry average EV to EBITDA multiple 6.5 x Company ABC data : EBITDA (normalized) 40m Market

Using the information in the table, answer the questions:

Industry average EV to EBITDA multiple	6.5 x
Company ABC data:
EBITDA (normalized)	40m
Market value of debt	4.8m

1. What is ABC company value? (use the market-based approach)

2. What is the ABC companys equity value?

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

Mutual Fund Industry Handbook

Authors: Gremillion

1st Edition

ISBN: 0471736244, 978-0471736240

More Books

Students also viewed these Finance questions

Question

★★★★★

Assuming the autonomous growth factor (A) remains unchanged, explain why the gains in output per worker associated with an increase in the capital-labor ratio inevitably fall following increases in...

Answered: 1 week ago

Question

★★★★★

2. An economy consists of two consumers with labels i=1,2. They exchange two goods labelled j=1,2. Suppose there is a fixed total endowment ej of each good to be distributed between two consumers....

Answered: 1 week ago

Question

★★★★★

1. Is hypnosis an altered state of consciousness? Compare the special-process and social-psychological answers to this question. Which do you find more compelling?

Answered: 1 week ago

Question

★★★★★

Foyert Corp. requires a minimum $ 30,000 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans...

Answered: 1 week ago

Question

★★★★★

Describe the employment-at-will doctrine. Are there any exceptions to it? If yes, provide some examples of exceptions to the employment-at-will doctrine. View keyboard shortcuts Describe the...

Answered: 1 week ago

Question

★★★★★

Basing on the " Artificial Intelligence for the Real World" article by Thomas H. Davenport, Rajeev Ronanki and published by the Harvard Business Review. Answer the following questions: Discuss the...

Answered: 1 week ago

Question

★★★★★

(b) A Refrigerant-134a (R-134a) with a rate of 0.1 kg/s enters a condenser of a heat pump at 700 kPa and 40C. R-134a leaves the condenser as a saturated liquid with a constant pressure. The rate of...

Answered: 1 week ago

Question

★★★★★

1. (no R needed) Consider the following causal seasonal model xt = xt-4+ Wt Owt-1 where and are nonzero and the variance of the Gaussian white noise terms is 2. (a) Identify the values of p, d, q, P,...

Answered: 1 week ago

Question

★★★★★

Q2) a) From the phase diagram given below; determine the composition, temperature and the type of the transformation for the three phase reactions. b) Schematically show the microstructures that will...

Answered: 1 week ago

Question

★★★★★

In a study of risk factors for cardiovascular disease, researchers measured the serum cholesterol levels of independent samples of women and men, all between the ages of 55 and 64. The following...

Answered: 1 week ago

Question

★★★★★

1. Nonlinear Optimization (45 points) For the following problem min x + x2 a) Set up the KKT conditions s. t. x1 + x2 1.5 x12-2x20 b) Solve the problem by checking the four options a. Both...

Answered: 1 week ago

Question

★★★★★

Be specific or general. Be general instead of specific in writing a sentence that de-emphasizes the grade received on your chemistry final examination.

Answered: 1 week ago

Question

★★★★★

Using the indirect plan, indicate the most coherent order for these sentences by listing their letters in that order: a. Why should you join the National Business Education Association? b. Dont wait....

Answered: 1 week ago

Question

★★★★★

Discuss the advantages and disadvantages of using word processing software programs when drafting messages. (Objective 2)

Answered: 1 week ago

Previous Question Next Question