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

At a Road Race you have 60 3/4 feet available for a water station your tables are 6 3/4 feet long. How many tables can you line up for the water station?
How can these sentences be combined to include a dependent clause? The lifeguard was on duty. She pulled a toddler out of the pool. A. The lifeguard was on duty
what does subordinate mean? lol....
Which sentence is written correctly? A. while Jonathan was napping, I finished doing the dishes. B. Ever since I was a teenager, I have loved going t
Kori spent $46.20 on gallons of gas. what was the price per gallon?
What was the connection between mount Olympus and Olympia
I don't understand this. Please help. Thank you.
V = LWH Solve for W.
what percent of 700 is 385
Write the equation of a line in slope-intercept form that goes through the points (-4, 3) and (-5, 1). You must show your work