Question: Repeat the above exercise, but this time replace the terminal value by an EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio times year-5 anticipated

Repeat the above exercise, but this time replace the terminal value by an EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio times year-5 anticipated EBITDA. Show a graph of the equity value of the firm as a function of the assumed year 5 EBITDA ratio, varying this ratio from 6–14.

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