Calculate the terminal value implied EV/EBITDA multiple to sense check the LTG assumption. Assume the cash flows fall at the middle of each year.

Calculate the terminal value implied EV/ EBITDA multiple to sense check the LTG assumption. Assume the cash flows fall at the middle of each year. 8.51x 8.34x 8.70x 8.16x Your answer is correct. The "terminal value implied EVIEBTOA multiple" is the rerminol value divided by the EBITOA of the terminal penod, used to check what the implied muluple is when the terminal value has been colculsted using the Gordon growth method (otherwse known as the growing perpetuly method) Care murx be taken. when cash flows are assumed to fall at the middle of the year as this impocts the formula used. The correct answer is; 8.70x