Question: I have some difficulties doing this multiple-choice problem. I would appreciate if anyone can help. The question is reading as follows: In a valuation model,
I have some difficulties doing this multiple-choice problem. I would appreciate if anyone can help. The question is reading as follows:
In a valuation model, the projected FCF for a firm is $250, $250, $350, $350, $450 for the next five years. Also, the projected EBITDA is $850. Using a trading multiple EV/EBITDA=10, and the WACC=10% to calculate the enterprise value (present value).
A. $1681 B. $936 C. $1849 D. $1029
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