The highest and lowest EBITDA (Earnings before interest and taxes, depreciation , and amortization) values for I Company across the industry and firms. Introduction: The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise, value to sales, and price-earnings ratio.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 19, Problem 1P

Summary Introduction

To determine: The highest and lowest EBITDA (Earnings before interest and taxes, depreciation, and amortization) values for I Company across the industry and firms.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise, value to sales, and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problem 1 in the text.

Compute the range of EBITDA:

Particulars	Firm O	Firm L	Firm N	Industry
EBITDA/Sales (A)	0.17	0.185	0.159	0.121
Sales(B)	$75	$75	$75	$75
EBITDA (A×B)	$12.75	$13.875	$11.925	$9.075

Hence, the highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075 and it ranges from $9.075 to $13.875.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Anthony jacksons pro

Hello tutor this is himlton biotech problem.

Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.7 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 5.05 percent. What is the dollar price of the bond?

Answer 2

Question

Chapter 19, Problem 1P

Summary Introduction

To determine: The highest and lowest EBITDA (Earnings before interest and taxes, depreciation, and amortization) values for I Company across the industry and firms.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise, value to sales, and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problem 1 in the text.

Compute the range of EBITDA:

Particulars	Firm O	Firm L	Firm N	Industry
EBITDA/Sales (A)	0.17	0.185	0.159	0.121
Sales(B)	$75	$75	$75	$75
EBITDA (A×B)	$12.75	$13.875	$11.925	$9.075

Hence, the highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075 and it ranges from $9.075 to $13.875.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 19, Problem 1P

Summary Introduction

To determine: The highest and lowest EBITDA (Earnings before interest and taxes, depreciation, and amortization) values for I Company across the industry and firms.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise, value to sales, and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problem 1 in the text.

Compute the range of EBITDA:

Particulars	Firm O	Firm L	Firm N	Industry
EBITDA/Sales (A)	0.17	0.185	0.159	0.121
Sales(B)	$75	$75	$75	$75
EBITDA (A×B)	$12.75	$13.875	$11.925	$9.075

Hence, the highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075 and it ranges from $9.075 to $13.875.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 19, Problem 1P

Summary Introduction

To determine: The highest and lowest EBITDA (Earnings before interest and taxes, depreciation, and amortization) values for I Company across the industry and firms.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise, value to sales, and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problem 1 in the text.

Compute the range of EBITDA:

Particulars	Firm O	Firm L	Firm N	Industry
EBITDA/Sales (A)	0.17	0.185	0.159	0.121
Sales(B)	$75	$75	$75	$75
EBITDA (A×B)	$12.75	$13.875	$11.925	$9.075

Hence, the highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075 and it ranges from $9.075 to $13.875.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1P

Summary Introduction

To determine: The highest and lowest EBITDA (Earnings before interest and taxes, depreciation, and amortization) values for I Company across the industry and firms.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise, value to sales, and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problem 1 in the text.

Compute the range of EBITDA:

Particulars	Firm O	Firm L	Firm N	Industry
EBITDA/Sales (A)	0.17	0.185	0.159	0.121
Sales(B)	$75	$75	$75	$75
EBITDA (A×B)	$12.75	$13.875	$11.925	$9.075

Hence, the highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075 and it ranges from $9.075 to $13.875.

Answer 6

Chapter 19, Problem 1P

Summary Introduction

To determine: The highest and lowest EBITDA (Earnings before interest and taxes, depreciation, and amortization) values for I Company across the industry and firms.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise, value to sales, and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problem 1 in the text.

Compute the range of EBITDA:

Particulars	Firm O	Firm L	Firm N	Industry
EBITDA/Sales (A)	0.17	0.185	0.159	0.121
Sales(B)	$75	$75	$75	$75
EBITDA (A×B)	$12.75	$13.875	$11.925	$9.075

Hence, the highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075 and it ranges from $9.075 to $13.875.

Answer 7

Chapter 19, Problem 1P

Summary Introduction

To determine: The highest and lowest EBITDA (Earnings before interest and taxes, depreciation, and amortization) values for I Company across the industry and firms.

Introduction:

The primary way to estimate the firm’s value can be determined by valuating the comparable. Multiples used in valuing the comparable are ratio of enterprise, value to sales, and price-earnings ratio.

Answer 8

Expert Solution & Answer

Answer to Problem 1P

The highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problem 1 in the text.

Compute the range of EBITDA:

Particulars	Firm O	Firm L	Firm N	Industry
EBITDA/Sales (A)	0.17	0.185	0.159	0.121
Sales(B)	$75	$75	$75	$75
EBITDA (A×B)	$12.75	$13.875	$11.925	$9.075

Hence, the highest and lowest EBITDA values for I Company across the industry and firms are $13.875 and $9.075 and it ranges from $9.075 to $13.875.

Answer 12

Ch. 19.1 - Prob. 1CC Ch. 19.1 - Prob. 2CC Ch. 19.2 - Prob. 1CC Ch. 19.2 - Prob. 2CC Ch. 19.3 - What is a pro forma income statement?Ch. 19.3 - Prob. 2CC Ch. 19.4 - Prob. 1CC Ch. 19.4 - Prob. 2CC Ch. 19.5 - Prob. 1CC Ch. 19.5 - Prob. 2CC

Answer to Problem 1P

Explanation of Solution

Want to see more full solutions like this?

Chapter 19 Solutions