Question: Extra Value Inc. is expected to generate EBIT of $20 million next year, with anticipated depreciation and amortization of $3 million. Extra Value has debt

Extra Value Inc. is expected to generate EBIT of $20 million next year, with anticipated depreciation and amortization of $3 million. Extra Value has debt of $40 million. Comparable firms are trading at average forward-looking EV/EBITDA ratios of five times. Based on the EV/EBITDA method, estimate the value of Extra Value's equity.

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