A business has an EBITDA of $220,000. If a comparable firm recently sold at a price-to-EBITDA ratio

Question:

A business has an EBITDA of $220,000. If a comparable firm recently sold at a price-to-EBITDA ratio of 2.1, what would be the theoretical value of this business using the market comparables approach?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Entrepreneurial Financial Management An Applied Approach

ISBN: 9780367335410

5th Edition

Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman

See More Books

Question Posted: May 12, 2024 08:16 AM

See More Questions

CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
There are two major producers of corncob pipes in the world. Suppose that the inverse demand function for corncob pipes is described by p = 120 - 4g where g is total industry output and suppose that...
Does the employee bear any part of the SUTA tax? Explain.
Reread the Management Focus AB InBev, Beer Globally, and Creating Value, and then answer the following questions: a. With more than 200 brands and strong coverage internationally of the different...
Academy Sales Company (ASC) started the 2007 accounting period with the balances given in the following financial statements model. During 2007 ASC experienced the following business events. 1....
The client is the chairman of the board of directors of an Ohio corporation. The board of directors has decided to merge the corporation with another Ohio corporation. The client wishes to know if...
Completing Schedule Comparing Bonds Issued at Par, at a Discount, and at a Premium (P10-3) On January 1 of this year, Bidden Corporation sold bonds with a face value of $100,000 and a coupon rate of...
Interview an entrepreneur who has exited his or her business. What were the challenges they faced during, and after, the exit? 318 Planning for the Entrepreneurs Transition
Choose one form of debt financing and conduct two interviews: the first with a person who is a source of such financing; the second with an entrepreneur who used such financing. Describe the form of...
Explain why caprylic acid, CH 3 (CH 2 ) 6 COOH, dissolves in a 5, aqueous solution of sodium hydroxide but caprylaldehyde, CH 3 (CH 2 ) 6 CHO, does not dissolve. (a) With two oxygens, the caprylic...
An investor is faced with a market portfolio with an expected return of 15%, a risk free rate of 5%, and a standard deviation of market returns of 20%. a) What combination of the market portfolio and...
You have been asked to evaluate an infinitely lived project. Sales in the first year are projected to be $100. Costs are projected at $50. There is no depreciation, and the tax rate is 30%. The real...
find the correct Market Implied cost of capital (ROE) in excel using the solver function with the data given below Stock Valuation: 10-Period Growth Model 3.21% Long run dividend growth rate 12.33%...
Compromised need is part of Robert Taylor s definition of Information Need in his 1 9 6 2 work The Process of asking a Question . Define this term and then discuss the importance of this feature of...
For each of the following, compute the future value: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. $ ed Present Value Years Interest Rate...
In the network shown, the power absorbed by R is 5 mW. Find R. 1 R. 2
For all of the following words, if you move the first letter to the end of the word, and then spell the result backwards, you will get the original word: banana dresser grammar potato revive uneven...

A business has an EBITDA of $220,000. If a comparable firm recently sold at a price-to-EBITDA ratio

Question:

Step by Step Answer:

To calculate the theoretical value of the business using the market comparabl...View the full answer

Entrepreneurial Financial Management An Applied Approach

Students also viewed these Business questions