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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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The index weighting that results in portfolio weights shifting away from securities that have increased in relative value toward
Sliva [168]

Answer: B. Fundamental weighting.

Explanation:

A fundamentally weighted index refers to a type of equity index whereby the components that are chosen based on the fundamental criteria like the dividend rates, book value, revenue, dividend rates, etc.

Fundamental weighting is the index weighting which results in portfolio weights shifting away from securities that have increased in relative value toward securities that have fallen in relative value whenever the portfolio is rebalanced.

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3 years ago
Manuel borrowed a total of $4000 from two student loans. One loan charged 4% simple interest and the other charged 3.5% simple i
hichkok12 [17]

Answer:

the principal amount at a rate of 4% is 2000

principal amount at a rate of 3.5% is 4000-2000 =2000

Explanation:

We have given total amount borrowed = $4000

Let x amount is borrowed at a rate of 4%

So $4000-x is borrowed at rate of 3.5%

Total interest = $150

We know that simple interest =\frac{principal\ amount\times rate\times time}{100}

So \frac{x\times 4\times 1}{100}+\frac{(4000-x)\times 3.5\times 1}{100}=150

4x+14000-3.5x=15000

0.5 x=1000

x = 2000

So the principal amount at a rate of 4% is 2000

And principal amount at a rate of 3.5% is 4000-2000 =2000

7 0
4 years ago
After reading the article, select the statements that are correct. Choose one or more: A. The cost-of-living adjustment for 2020
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Answer:

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  • D. Elizabeth Warren has proposed using a new inflation measure that outpaces the current one used.

Explanation:

The article is, ''<em>Social Security checks to rise modestly amid push to expand benefits '' </em>by<em> Associated Press. </em>

Blahous is a former program trustee who believes that the current inflation adjustment rate at which Social security is increasing is overcompensating seniors because it does not take into account that seniors could be switching to buying cheaper products which is the Substitution effect.  

Advocates and the seniors themselves have complained that the 2020 COLA is not enough to meet their current needs especially given the rising cost of healthcare.

Elizabeth Warren and Bernie Sanders both proposed using a new measure for inflation that will adequately compensate the seniors because it outpaces the current one used.

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3 years ago
Why do we need to know about plate tectonics?
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Tectonics are the driving force for all geology.
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4 years ago
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