Problemassume that a business has an ebit of 10 million, Ask an Expert

Accounting

Problem:

Assume that a business has an EBIT of $10 million, interest expense of $2 million, and depreciation expense of $1 million. Furthermore, its market multiple based on EBITDA as the value proxy is 6.5.

Required:

Question: What is the estimate of the business's equity value?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172137

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