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

Up to 60% of grocery store purchases made by consumers are
Please help 14 points
the sum of a number and three is less than nineteen less the number
Which of these BEST describes the early universe? A. It was very hot and very tightly packed together. B. It was very cold and very tightly packed together.
B. Social Interaction.
A fr is a trapezoid. Find the value of x and y
20 points and brainliest! What are some things that you did this week? Record 5 complete Spanish sentences describing what you did. Don't forget to conjugate
In a response of at least three paragraphs, compare and contrast the independence movements of India, Latin America, and the United States. Be sure to discuss h
ARE YOU GOOD AT GEOMETRY?? WILLING TO HELP SOMEONE OUT?? NEED EASY POINTS AND BRAINLIEST?? COME RIGHT THIS WAY ALL HELP IS APPRECIATED! ;)
can you answer this one