Question: ANSWER THE FOLLOWING QUESTION BASED ON EXHIBIT 3 multial 9. Both company A and Company B were purchased at the end of 2011 for a

ANSWER THE FOLLOWING QUESTION BASED ON EXHIBIT 3 multial 9. Both company A and Company B were purchased at the end of 2011

for a 5x EBITDA multiple and financed with $3,000 of debt. Based

on the information provided, which company is likely to have a higher

ANSWER THE FOLLOWING QUESTION BASED ON EXHIBIT 3 multial 9. Both company A and Company B were purchased at the end of 2011 for a 5x EBITDA multiple and financed with $3,000 of debt. Based on the information provided, which company is likely to have a higher equity valuation at the end of 2014. Explain your reasoning (hint: one of the companies likely paid down more debt)

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