Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are asked to use the indirect method to evaluate a firm, Macrosoft. You want to compute the price of this firm. You obtain the

You are asked to use the indirect method to evaluate a firm, Macrosoft. You want to compute the price
of this firm. You obtain the financial data in the latest year as follows:
(a) Macrosoft has sales $1200m;
(b) The corresponding EBITDA is $175m,
(c) The number of shares outstanding is 100m
(d) The cash amount is $100m
(e) The total amount of debt is $700m
The following companies are considered to be the most similar ones to Macrosoft. Please calculate
the proper multiples to get the price of the firm (average).
\table[[,EV,EBITDA,Sales],[Comp 1,$970m,$100m,$808m
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

More Books

Students also viewed these Finance questions