An equity analyst, has determined that the appropriate ratio of Enterprise Value to EBITDA (EV/EBITDA) for Bulldogs Inc. is 10.2. The analyst has also collected the following forecasted information for Bulldogs Inc.: EBITDA = ₽22,000,000 Market value of debt = ₽56,000,000 Cash = ₽1,500,000 The value of equity for Bulldogs Inc. is closest to: a. ₽224 million. b. ₽100 million. c. ₽169 million. d. ₽281 million

An equity analyst, has determined that the appropriate ratio of Enterprise Value to EBITDA (EV/EBITDA) for Bulldogs Inc. is 10.2. The analyst has also collected the following forecasted information for Bulldogs Inc.: EBITDA = ₽22,000,000 Market value of debt = ₽56,000,000 Cash = ₽1,500,000 The value of equity for Bulldogs Inc. is closest to: a. ₽224 million. b. ₽100 million. c. ₽169 million. d. ₽281 million

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 24E: A company had WACC (weighted average cost of capital) equal to 8. % If the company pays off mortgage...

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A company had WACC (weighted average cost of capital) equal to 8. % If the company pays off mortgage bonds with an interest rate of 4% and issues an equal amount of new stock considered to be relatively risky by the market, which of the following is true? a. residual income will increase. b. ROI will decrease. c. WACC will increase. d. WACC will decrease.
An equity analyst, has determined that the appropriate ratio of Enterprise Value to EBITDA (EV/EBITDA) for Bulldogs Inc. is 10.2. The analyst has also collected the following forecasted information for Bulldogs Inc.: EBITDA = ₽22,000,000 Market value of debt = ₽56,000,000 Cash = ₽1,500,000 The value of equity for Bulldogs Inc. is closest to:
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