Dreyer's Grand Comparable Firm Multiple Revenue EBITDA Multiple Multiple 3.2 10.5 Drone Corp Revenues EBITDA 25,000,000 10,000,000 Drone Corp Enterpri se Value ?

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.