Assume the company was purchased for a 7x multiple at the end of year 1, financed...

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Assume the company was purchased for a 7x multiple at the end of year 1, financed with 1650 of debt. If the company were sold at the end of year 4 for the same multiple, what would the equity return be? Use the following information to answer questions 28-29. 2016 adjustments Revenues COGS SGB A Depreciation Operating Income Debt 12,000 4,000 2,000 500 5,500 20,000 Proforma Assume that this company made an acquisition of a company with 6,000 of sales with similar gross margins to the existing company. Assume additional SGEA expenses of $500. Assume the purchase was financed with $14.000 of additional debt. 28. Calculate Debt/EBITDA after making the proforma adjustments. 29. Calculate EBITDA/interest after making the proforma adjustments. Assume the company was purchased for a 7x multiple at the end of year 1, financed with 1650 of debt. If the company were sold at the end of year 4 for the same multiple, what would the equity return be? Use the following information to answer questions 28-29. 2016 adjustments Revenues COGS SGB A Depreciation Operating Income Debt 12,000 4,000 2,000 500 5,500 20,000 Proforma Assume that this company made an acquisition of a company with 6,000 of sales with similar gross margins to the existing company. Assume additional SGEA expenses of $500. Assume the purchase was financed with $14.000 of additional debt. 28. Calculate Debt/EBITDA after making the proforma adjustments. 29. Calculate EBITDA/interest after making the proforma adjustments.

Answer rating: 100% (QA)

To calculate the equity return at the end of year 4 we need to determine the initial equity ... View the full answer