A privately held business has the same EBITDA as a publicly traded one. It is assumed that

Question:

A privately held business has the same EBITDA as a publicly traded one.

It is assumed that the liquidity discount is 25 percent. What theoretically should be the value of the privately held business if the publicly traded one is worth $1,500,000?

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: 9781000650488

5th Edition

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

See More Books

Question Posted: May 12, 2024 08:13 AM

See More Questions

Give Correct ANSWERS Human-Computer Interaction (a) If you had been one of the original inventors of the WIMP interface, and engineers on the technical team had been sceptical about the advantages...
1. A firm consists of 600 acres of land, of which 500 acres will be planted with corn, soybeans, and wheat according to this condition: -At least half of the planted acreage should be in corn - No...
Please Summarize this article about Communicating competitive information,and Applying Game Theory To Managing Price Competition. Pricing Strategies Course -No longer than 400 words. Like any other...
Listed below are measured amounts of caffeine (mg per 12 oz of drink) obtained in one can from each of 20 brands (7-UP, A&W Root Beer, Cherry Coke, . . . , Tab). Are the statistics representative of...
For each family in Exercise 3.28, describe the natural parameter space. In Exercise 3.28 Show that each of the following families is an exponential family. (a) Normal family with either parameter or...
The projected benefit obligation was $80 million at the beginning of the year and $85 million at the end of the year. Service cost for the year was $10 million. At the end of the year, pension...
Compare and contrast the U.S. and IASC approaches to segmental disclosure.
The workload in many areas of bank operations has the characteristics of a non-uniform distribution with respect to time of day. For example, at Chase Manhattan Bank in New York, the number of...
Determine angles a, b, and c shown in the Figure 1. The vertical lines are, of course, parallel. 75 a C FIGURE 1 Problem 2. Determine length ED for the similar triangles shown in Figure 2. A D B LO...
Is it possible for an entrepreneur to experience a reduction in wealth when a business is sold even though the value of the business is much greater than the amount invested? Under what conditions...
If a transaction took place three years ago, why would it not necessarily be applicable to a business sale that is taking place today?
What is a Treasury regulation? Is it binding on the courts?
40) Perla Company has projected cost of goods sold of P4,000,000 including fixed cost of P800,000. Variable costs are expected to be 75% of net sales. What will be the projected net sales?
Lucid Technologies has a dividend payout ratio of 60% (i.e., dividends/earnings).Its capital structure is expected to remain relatively stable for the foreseable future.Lucid's most recent net income...
Kent borrowed $6500 on January 11 at 12.5% exact interest he made payments of $1000 on February 16 and $1500 on March 14 find his payoff amount on April 10 according to the U.S. rule
An unlevered firm has a book value of equity $100 million and is considering borrowing $40 million at 8% interest rate to buy back stocks. Once the company issues the debt, it becomes a levered...
What are the similarities and differences among global minimum variance (GMV), risk parity (RP), and low beta portfolios? Why might these portfolios outperform (as measured by Sharpe ratio) when they...
What are interim reports? Why are balance sheets often not provided with interim data?
Revol Industries manufactures plastic bottles for the food industry. On average, Revol pays $76 per ton for its plastics. Revol's waste-disposal company has increased its waste-disposal charge to $57...
Utility costs at one UISZ Power Corporation's factories are listed below: Month --- Machine hours --- Utility Cost $ Feb - 4421 - 39,308 Mar - 4268 - 39,573 Apr - 4234 - 39,392 May - 4237 - 39,394...
Dividends on Preferred and Common Stock Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year...
[The following information applies to the questions displayed below.] In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the...

A privately held business has the same EBITDA as a publicly traded one. It is assumed that

Question:

Step by Step Answer:

To calculate the theoretical value of the ...View the full answer

Entrepreneurial Financial Management An Applied Approach

Students also viewed these Business questions