Question & Answer: A firm has an EBIT of $37,300, depreciation of $4,600, interest of $1,200, and taxes o…..

A firm has an EBIT of $37,300, depreciation of $4,600, interest of $1,200, and taxes of $400. The EBITDA multiple is 9.4. What is the value of the firm?

Select one:

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a. $378,820

b. $307,380

c. $393,860

d. $292,340

e. $341,214

Expert Answer

solution:

EV/EBITDA = 9.4
EV/(37300+4600) = 9.4
EV= value of firm	393,860

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