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 is a vector quantity? A. A quantity direction only B. A quantity with magnitude and direction C. A quantity with magnitude only D. A quantity with no magni
Why does the United States regulate automobile manufacturing in so many ways?
Which expression is equivalent to the value 64? A) 34 B) 64 C) 6.4 x 102 D) 82
EMERGENCY!! PLEASE HELP I NEEd IT NOW!!
Which of the following was not true about the United States in the mid-1830s to help set the stage for the era of settlers and settlers in the Pacific Northwest
Uma’s salad dressing recipe calls for 1/2 cup of yogurt.She wants to triple the recipe.How much yogurt does she need?
6.4 round to the nearest whole number
Dose anyone have the answer to this question
Which equation describes the sum of the vectors plotted below?
what is a sonic boom