EBITDA multipleTerminal value in 20278.0 xPresent value of terminal valuePresent value of stage 1 cash flowsEnterprise value (stage 1 + 2)6,621,062Using the above information, what is the enterprise value of the firm if the cost of capital is10%?

Step 1:Given that the EBITDA multiple for terminal value is 8.0x.Therefore,Terminal…

Answered: EBITDA multiple Terminal value in 2027…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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EBITDA multiple Terminal value in 2027 8.0 x Present value of terminal value Present value of stage 1 cash flows Enterprise value (stage 1 + 2) 6,621,062 Using the above information, what is the enterprise value of the firm if the cost of capital is 10%?