Assume the following facts apply to Bernake Corporation (t c = 0.35): E = $195, X= $390,
Question:
Assume the following facts apply to Bernake Corporation (tc = 0.35): E = $195, X= $390, M0 = 20, Interest = $90.
a. What is the value of the corporation using earnings to stockholders (E)?
b. Assume the EBIT multiplier is 10 (M1 = 10). What is the firm value?
c. Assume that the depreciation expense accrual is $260 and that the EBITDA multiplier is 6. What is the firm value?
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a Value based on earnings to stockholders E Using the PriceEarnings Ratio PE approachwe can calculat...View the full answer
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