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

Why did Phoenicians developed a currency?HELP ASAP
Who referred to the germans as the master race?
Using a hammer to drive a nail, it is the reaction force that brings the motion of the hammer to a stop but the _______________ that drives the nail into the wo
Arrange this 10 scrambled words:E v b n o l o n d eClue:1: If u love someone , you'll never forget this word...
If ADE ABC in this diagram, which pair of ratios must necessarily be equal?
Which data set has the widest spread? data set A: 1, 1, 2, 1, 2, 1 data set B: 2, 2, 4, 4, 3, 3 data set C: 1, 1, 2, 2, 1, 5 data set D: 3, 5, 5, 5, 5, 4
The musical instrument referred to as the "King of Instruments" is the A. human voice. B. organ. C. tuba. D. violin.
A white-blue star is hotter than a red star. T or F
Which is happening when humans control the breeding of living things to favor certain desired features?
read the sentence. the forgery ________ so exquisite that it hung in the museum for the past two decades without discovery. which verb or verb phrase is in the