Extra Value Inc. is expected to generate EBIT of $20 million next year, with anticipated depreciation and
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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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Related Book For 
Financial Management Concepts and Applications
ISBN: 978-0132936644
1st edition
Authors: Stephen Foerster
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