Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are considering a company with revenue 192 million, cost 96 million, depreciation 12 million, interest expense 15 million, tax rate 30%. 1. If you

You are considering a company with revenue 192 million, cost 96 million, depreciation 12 million, interest expense 15 million, tax rate 30%.

 

1. If you believe that the company should be traded at a price-to-EBITDA multiple of 5, then the company should be worth (million)?

 

2. If you believe that the company should be traded at a PE ratio of 11, then the company should be worth (millions) ?

Step by Step Solution

3.45 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the values we need to use the given financial information and apply t... 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

Financial Accounting and Reporting a Global Perspective

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

4th edition

978-1408066621, 1408066629, 1408076861, 978-1408076866

More Books

Students also viewed these Finance questions