Question: interpret and explain this chart with yourword. Equity multiples model Equity valuation model Firm's earnings or book value Cash flows to equity holders or dividends

interpret and explain this chart with yourword.

interpret and explain this chart with yourword. Equity multiples model Equity valuation

Equity multiples model Equity valuation model Firm's earnings or book value Cash flows to equity holders or dividends discounted at the multiplied by the Value of equity Corresponding market multiple Cost of equity equals Discounted cash flow model Value of debt Adjusted present value model Cash flows from business assets discounted at the Unlevered value of business assets Cash flows from business assets less the Unlevered cost of equity discounted at the Levered value of business assets Tax savings Weighted average cost of capital Present value of tax savings discounted at the Cost of debt multiplied by the EBITDA2 EBITDA multiples model EBITDA multiple

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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 Finance Questions!