Calculate the continuation value of KMS using the following table, and assuming an EBITDA multiple of 8.5. (Click on the following icon in order to copy the contents of the table below into a spreadsheet.) -2019 $16,476 2020 $18,116 The continuation value is $ 2021 $19,875 2022 $21,792 thousand. (Round to the nearest integer.) 2023 $23,882 EBITDA (000) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. 2024 $26,162

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 2MCQ
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Calculate the continuation value of KMS using the following table, and assuming an EBITDA multiple of 8.5. (Click on the following icon in order to copy the contents of the table below into a
spreadsheet.)
-2019
$16,476
2020
$18,116
The continuation value is $
2021
$19,875
2022
$21,792
thousand. (Round to the nearest integer.)
2023
$23,882
EBITDA (000)
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and
in these problems in anticipation of the return of standard depreciation practices during your career.
2024
$26,162
Transcribed Image Text:Calculate the continuation value of KMS using the following table, and assuming an EBITDA multiple of 8.5. (Click on the following icon in order to copy the contents of the table below into a spreadsheet.) -2019 $16,476 2020 $18,116 The continuation value is $ 2021 $19,875 2022 $21,792 thousand. (Round to the nearest integer.) 2023 $23,882 EBITDA (000) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. 2024 $26,162
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