Question: 6. Company A is choosing between two different depreciation methods to use to maximize their EBITDA. They are currently choosing between the double-declining balance method
6. Company A is choosing between two different depreciation methods to use to maximize their EBITDA. They are currently choosing between the double-declining balance method and the straight-line method. Which depreciation method would maximize their EBITDA? a) Double-declining balance method b) Straight-line depreciation method c) Either depreciation method yields the same EBITDA 7. Companies with a higher PEG ratio are considered ? a) Undervalued b) Overvalued c) At fair value 8. Company X has 10xEV/EBITDA multiple, 30PE ratio, $12.00EPS,$300M revenue and \$100M EBITDA. If you were given the mean EV/EBITDA multiple for Company X 's peer group at 15x. What would you approximate Company X 's enterprise value to be? a) $1,500M b) $3,000M c) $4,500M 9. Generally, the market value of a business is than the book value on their balance sheet? a) More b) Less C) Equal
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