Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You project that the EBITDA for your company in year 4 will be $2 million. A similar company with EBITDA of $3.5 million recently sold
You project that the EBITDA for your company in year 4 will be $2 million. A similar company with EBITDA of $3.5 million recently sold for $35 million. Investors in similar companies appear to require a 40% return on their investment. What is your expected value for your company in year 4 ? Based on this and investors' required rate of return, what pany? You project that the EBITDA for your company in year 4 will be $2 million. A similar company with EBITDA of $3.5 million recently sold for $35 million. Investors in similar companies appear to require a 40% return on their investment. What is your expected value for your company in year 4 ? Based on this and investors' required rate of return, what is the current value of your company? \begin{tabular}{|l|} \hline [ Select ] \\ \hline[ Select ] \\ $520,616 \\ $9,110,787 \\ $91,107,870 \\ $5,206,164 \\ \hline \end{tabular}
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