Question: Calculate the implied enterprise value of Rosetta Stone using the average EV/EBITDA multiple for all three categories of comparable firms provided in Exhibit 9 and

Calculate the implied enterprise value of Rosetta Stone using the average EV/EBITDA multiple for all three categories of comparable firms provided in Exhibit 9 and Rosetta Stone EBITDA provided in Exhibit 6, a total of three multiples. Interpret what these numbers suggest regarding the value of Rosetta Stone. The market-multiples approach seems easy. What are the some pros and cons of using a market-multiples approach in valuation?

ROSETTA STONE, INCH PRICING THE 2009 IPOFinancial Data for Industry ComparableskerarRevenue Incomegrowth growthEVERITA9

Exhibit 6ROSETTA STONE, INC.: PRICING THE 2009 IPOone Historical Financial Performance (2006 to 2008, in thousands of dolla

Recent ROSETTA STONE, INC: PRICING THE 2009 IPO Financial Data for Industry Com 9222222

Step by Step Solution

★★★★★

3.47 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Exhibit 9 Industry Comparables Company Category Revenue 2008 EBITDA 2008 EVEBITDA Multiple Pearson E... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question A: Stay Safe International manufactures industrial safety equipment at its plant in Evans- ville, Indiana. The company has initiated DRP to coordinate finished goods distribution from the...

Suggest pros and cons for fat client and thin client strategies.

What are some pros and cons to 360-degree feedback?

What are some pros and cons of holding high levels of current assets in relation to sales? Use the DuPont equation to help explain your answer.

1. Stella Scott has a work-study position at the fitness center on campus. Her manager has asked her to create a worksheet to keep track of attendance and revenue for the fitness center's classes....

Machines are acquired by Milestone Corporation on April 1, 2011, as follows: Instructions: 1. Calculate the group depreciation rate for this group. 2. Calculate the average life in years for the...

You have been asked to compare three alternative investments and make a recommendation. Project A has an initial investment of $5 million and after-tax cash flows of $2.5 million a year for the next...

You are designing a wedge-shaped container as illustrated in Figure P18.4. You must choose a value for the angle $\theta$, which then determines the other two equal angles in this isosceles wedge....

A vessel contains 1.00 X 104 oxygen molecules at 500 K. (a) Make an accurate graph of the MaxwellBoltzmann speed distribution function versus speed with points at speed intervals of 100 m/s. (b)...

Stocks A and B have the following historical returns: a. Calculate the average rate of return for each stock during the 5-year period.b. Assume that someone held a portfolio consisting of 50% of...

Stocks A and B have the following historical returns: a. Calculate the average rate of return for each stock during the period 2004 through 2008.b. Assume that someone held a portfolio consisting of...

Consider the axiomatic system where the undefined terms consist of elements of a set S, and a set P consisting of pairs of elements of S, (a, b), satisfying the following axioms: A1 If (a, b) is in...

Laminar annular flow with constant wall heat flux, repeat the development of S10.8 for flow in an annulus of inner and outer radii kR and R, respectively, starting with the equations of change. Heat...

Select the sentence correctly punctuated with semicolons and / or colons. The product will be introduced at three different trade shows one in Denver, one in Scottsdale, and one in Houston. The...

2. For each of the following matrices, find all real numbers x such that it is invertible. 0 0 0 4 2 A = B 1 -2 4 -2 -3 1 -2 -2 -1 1 0 0 1

1. For each of the following matrices, use its determinant to determine whether it is invertible. -1 3 5 2 1 0 0 0 1 -1 2 4 -1 1 2 A = B = 1 2 7 -2 -3 1 -2 1 1 -2 3 1 -1 0 0, 0 -2 10 2 1 4 1 3 C = 1...

The statement of financial position of Metlock Limited follows for the current year, 2020: METLOCK LIMITED Statement of Financial Position December 31, 2020 Current assets $114,380 Current...

Global business owners and managers must plan for such unexpected events such as changes in trade rules. They must calculate how trade rules will affect markets and pricing. According to Farm Policy...

2. Use row operations to evaluate each of the following determinants. 1 2 -3 -2 2 1 4 3 2 1 |A| |B| 2 C| = -2 1 -2 4 -2 1 -3 1 -2 4 3 -1 -1 1 -1 -2 0 -2 2 3 1 |D| |E| = -6 1 -1 -1 -1 0 -1 3 1 -1 3 1...

I cannot eat a cockroach. I would never ever eat a cockroach! Yes - I would eat a cockroach on a dare! I want to try a cockroach delicacy someday. That would be fun!

At the beginning of its fiscal year 2006, an analyst made the following forecast for General Mills, Inc., the consumer foods company, for 2006-2009 (in millions of dollars): General Mills reported...

At the end of 2009, you forecast the following cash flows (in millions) for a firm with net debt of $759 million; You forecast that free cash flow will grow at a rate of 4% per year after 2012. Use a...

6-7; 6-9; 6-12 . I need help with these finance questions. PROBLEM 6-1 Cash provided by operations (CPBO) differs from free cash flow for the following reasons: 1. Solution Legend = Value given in...

I need assistance with this finance question 8-1. Thank you PROBLEM 8-1 Given Sale price Square footage Selling price/sq ft Time on the market $ $ Comp #1 240,000.00 $ 2,240 107.14 $ 61 days Solution...

Hi man! Just saw yo comment. I was counting on you, can you share with me what you found through Capital IQ. I am offering you the question again, since you already worked on it. just share with me...

Answer the 11 questions for the attached valuation project.Provide high level analysis and support by excel calculations. Please suggest a reasonable price. Thank you Provide high level analysis and...