An analyst studying Albion Industries determines that the average EV/EBITDA ratio for Albion's industry is 10. The

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

Question:

An analyst studying Albion Industries determines that the average EV/EBITDA ratio for Albion's industry is 10. The analyst obtains the following information from Albion's financial statements:

EBITDA =11,000,000

Market value of debt =30,000,000

Cash =1,000,000

Based on the industry's average enterprise value multiple, what is the equity value of Albion Industries?

Related Book For answer-question

Corporate Finance

ISBN: 978-0071339575

7th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro

See More Books

Posted Date: May 11, 2024 03:31 PM

See More Questions

Can someone help me with the below question? I'm not sure if for calculating the FVAF I should use "t" of 120 (12*10) or of 10 (years). Please help! Future value annuity factor (FVAF) = ((1 + r)t -...
a). Voting Structure : If it is a publicly traded firm, look at whether the firm has multiple classes of shares and if so, whether they have different voting rights. If the government is an investor,...
. Consider the horizontal merger of Staples and Office Depot. Fill in the numbers on the price changes across the markets. Column (1) represents the case where the antitrust authority would reject...
Hi,Please answer no.5 and 6 only. This is my 3rd time to uploadthis question. Thank you so much! Bay Lake Mining Ltd. purchases earth-moving equipment on 1 August $ 20 \times 6 $ and signs a...
How do group norms and status influence an individuals behavior?
Lou recently had to write a memo to staff about upcoming holiday hours. The company needed to block employees from taking any leave during Thanksgiving week. What is the best approach for Lou to...
Under MACRS, all assets are assumed to have been placed into service on January 1, regardless of when they were actually purchased. (True/False)
As Fiona and Rip head out of the room with Andy, Hy realizes the bench has emptied, so he asks you, the fourth team member, to coach Andy on his bar chart by making a list of the problems you see in...
Explain what you understand from manufacturing costs through costs accounting 1?
The documentary "Sound and Fury" depicts the stories of two American families with young deafchildren and their conflict over whether or not to give their children cochlear implants. The documentary...
The Patels are looking to retire at age 65, as described in detail in the RETIREMENT INFORMATION section of the case study. What balance do they need on the first day of retirement to support this...
Using a simple illustration, show how you can realized pass band through L- C and R Circuits, plots its magnitude and phase response.
A self-regulating tank has a transfer function of the form shown below. The tank has a time constant, =1590 seconds and a gain, G=2000 s/m2. Determine the amplitude and phase shift of the system to...
Problem 1. Assume we have a random sample of points (x1, Y),..., (x20, Y20) where Xi Yi = = i for all i. = a + xi + are random variables where &; ~N (0,02) and the e; are i.i.d. a, , are unknown...
Design a lead high pass filter with = show its transfer function , magnitude and phase response. C = 0 and R
6. For a normal distribution with a mean of 6 and a standard deviation of 6, the value 9 has a z value of A) -0.5 B) 0.5 C) 1.5 D) 2.5 9-6 Le = -3- Le .5 X B. . If the standard deviation of a...
The following information is available for Partin Company: Sales $598,000 Sales Returns and Allowances 20,000 Cost of Goods Sold 398,000 Selling Expense 69,000 Administrative Expense 25,000 Interest...
Discuss the effect on setting performance bonuses for staff if financial performance for a period contains both realised and unrealised gains/losses.
Financial statements should reflect realistically the performance and position of an organisation, but most of the accountant's rules conflict directly with the concept of realism. Discuss.
Explain why financial reports prepared under the historical cost convention are subject to the following major limitations: inventory is undervalued the depreciation charge to the income statement...

An analyst studying Albion Industries determines that the average EV/EBITDA ratio for Albion's industry is 10. The

Question:

Expert Answer:

Answer To calculate the equity value of Albion Industri... View the full answer

Corporate Finance

Students also viewed these finance questions