HossBaskervill43371 HossBaskervill43371
  • 02-07-2021
  • Business
contestada

What is Company XYZ's intrinsic equity value using the WACC as the discount rate and assuming the terminal value is based on the EBITDA exit multiple

Respuesta :

Munali Munali
  • 05-07-2021

Answer:

$315,198

Explanation:

WACC = [ Equity / Total value ] * cost of equity + [ Debt / Total value ] * Cost of debt.

WACC = 11.5%

Exit multiple = Total cash outflow / Total cash inflow

Exit multiple = $120,000 / 36,000 = 3.3x

EBITDA of the company is $178,412.

Answer Link

Otras preguntas

How do you write .344 as a fraction in lowest terms
A model of a famous statue is 2 1/2 inches tall the actual statue is six and two thirds feet tall what is the ratio of the height of the model to the height of
I'm really lost on this problem
one who is actively involved in government activites
FRACTIONS: 1 WHOLE MINUS 7/12 MINUS 1/4
Sue's Sushi placed two orders with its fish supplier. One order was for 15 pounds of salmon and 8 pounds of tuna; the order totaled $259. The other order was fo
a pipe is leaking at 1.5 cups per day.about how many gallons per week is the pipe leaking
does proportional and congruent mean the same thing?
one who is actively involved in government activites
What is the LCM of 40 and 15?