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 to keep henna colour dark and vibrant?
A rule is or principle that describes what happens in nature is called law
Using the same Apple ID for multiple devices will definitely sync them all together True/False
Please help and write a counterclaim on cash currency
Greatest common factor of 12a and 9a^2
In a survey 7 out of 8 dentists recommend a ProTooth toothbrush.Based on this information,which can the toothbrush company predict about its recommendations
Enter CHORUS. CHORUS: Two households, both alike in dignity, In fair Verona, where we lay our scene, From ancient grudge break to new mutiny, Where civil bl
A car has a length of 193.2 inches. A scale drawing is made using a ratio of 20:1 . What is the length of the scale drawing?
the LMC of 9 and 7​
Nine times the square of a number plus 8 is 44. The number is positive. What’s the number?