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True [87]
3 years ago
10

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
Business
1 answer:
const2013 [10]3 years ago
5 0

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.

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Answer:

a. 464 beans

b. $464

Explanation:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

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And, all other items values would remain the same

Now put these values to the above formula  

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= \sqrt{\frac{2\times \text{15,400}\times \text{\$14}}{\text{\$2}}}

= 464 beans

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= Economic order quantity ÷ 2

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= 232 units

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= $464

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Ethnocentric

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Two cities face identical prices for their housing. City A decided to be a pollution free city "Clean town" and all the factorie
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How can managers increase the likelihood of making change happen​ successfully?
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