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

What's 5 divided by x squared explain
josh wanted to buy a bicycle but didn't have enough money. After josh told his troubles to sam slick, sam said,"I can fix that. see that fence? each time you ju
Factor the expression. If the expression cannot be factored, say so.
The ______ was established in 1943 to assist in the transition from a peacetime to a wartime economy ?
Forget the motor When im on the boat Think of the best time To buy a new coat What am I......?
What is the creepiest sounding scale? What scale would u use for writing creepy music in other words
josh wanted to buy a bicycle but didn't have enough money. After josh told his troubles to sam slick, sam said,"I can fix that. see that fence? each time you ju
What is the creepiest sounding scale? What scale would u use for writing creepy music in other words
find the sum. write each mixed number in simplest form 4 7/8 + 5 1/4
The ______ was established in 1943 to assist in the transition from a peacetime to a wartime economy ?