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

Rearrange 2x = y/w to make w the subject​
Which revision is the most logical for karishma to make her prediction as she continues to read A: The narrator would carry out the murder plot undetected B:
If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevens from rooms per night to room
Find the equation of a line that passes through the points (4,0) and (2,4). Leave your answer in the form y = m x + c
Suppose there is a simple one good economy that only produces spinning rims. In 2015, the economy was able to produce 1 million sets of spinning rims at an amaz
Each of the following are classified as an operating activity except: multiple choice payment of salaries collection of credit sales receipt of dividend revenue
Which of the following is a physical change?
What is meant by the "invisibility of one's own culture"?
PLZ HELP its due soon!!!
The chemical formula is different from the empirical formula in