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earnstyle [38]
2 years ago
7

How do you find the terminal value using the EV/EBITDA exit multiple

Business
1 answer:
stira [4]2 years ago
8 0

Terminal EV = EV/EBITDA X EBITDA value of final year of forecast.

<h3>What is EBITDA?</h3>

EV stands for Enterprise Value and is the numerator in the EV/EBITDA ratio. A firm’s EV is equal to its equity value plus its debt less any cash debt less cash is referred to as net debt. In finance, the terminal value of a security is the present value at a future point in time of all future cash flows when we expect stable growth rate forever. The perpetual growth method of calculating a terminal value formula is the preferred method among academics as it has a mathematical theory behind it. This method assumes the business will continue to generate Free Cash Flow (FCF) at a normalized state forever. The exit multiple approach is more common among industry professionals, as they prefer to compare the value of something they can observe in the market.

The correct answer is option A.

Learn more about EBITDA, refer:

brainly.com/question/18370421

#SPJ9

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During production, the crew most closely associated with the camera consists of ________. a. the director and the production man
den301095 [7]

During production, the crew most closely associated with the camera consists of the director and the production manager.

<h3>What are production crew members?</h3>

Production crew members are in charge of setting up, dismantling, maintaining, and removing stage music and theater production equipment.

They are hired by production companies, event venues, theater groups, and touring bands.

Thus, option A is correct.

For more details about production crew members, click here:

brainly.com/question/17399747

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7 0
2 years ago
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AleksandrR [38]
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6 0
3 years ago
Read 2 more answers
When __________ advertisers seek to determine the cost of advertising needed to achieve the desired objectives.
Katarina [22]

Answer:

determining the advertising budget                              

Explanation:

An advertising budget refers to the estimate of the advertising spending of a corporation over a specified period of time frame. More crucially, it is the cash a firm is capable of setting aside to achieve its advertising goals. In developing a marketing budget, a corporation should evaluate the importance of investing a dollar in ads against such a currency's value as known revenues.

The advertising budget is a part of the general revenue or market presence of a business that can be seen as the investment in the development of a product. The greatest marketing outlays — and initiatives — concentrate on the desires of consumers and solve their issues, not corporate problems like overstock cuts.

7 0
3 years ago
The T-account showing the manufacturing overhead activity for Alfred Corp. for 2020 shows a debit of $195,000 and a credit of $2
umka21 [38]

Answer: $195000

Explanation:

The actual manufacturing overhead refers to the true costs which are incurred during production and this include factory supplies used, indirect materials, insurance, depreciation, factory taxes, etc.

Here, the debit of $195,000 is the actual manufacturing overhead while the credit of $203000 is the allocated manufacturing overhead.

6 0
3 years ago
A marketing plan includes this marketing objective: "Create positive feelings about our brand." What is the main problem with th
Nesterboy [21]

c. It is not specific and measureable.

i hoped this helped


7 0
4 years ago
Read 2 more answers
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