The range of EBITDA/sales multiple for Company I. Introduction: The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Question

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Answer 1

Question

Chapter 19, Problem 1P

Summary Introduction

To determine: The range of EBITDA/sales multiple for Company I.

Introduction:

The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The EBITDA values ranges from $9.075 to $13.875.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problems 1 in the textbook.

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 EBITDA values ranges from $9.075 to $13.875.

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Answer 2

Question

Chapter 19, Problem 1P

Summary Introduction

To determine: The range of EBITDA/sales multiple for Company I.

Introduction:

The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The EBITDA values ranges from $9.075 to $13.875.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problems 1 in the textbook.

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 EBITDA values ranges from $9.075 to $13.875.

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Answer 3

Question

Chapter 19, Problem 1P

Summary Introduction

To determine: The range of EBITDA/sales multiple for Company I.

Introduction:

The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The EBITDA values ranges from $9.075 to $13.875.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problems 1 in the textbook.

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 EBITDA values ranges from $9.075 to $13.875.

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Answer 4

Question

Chapter 19, Problem 1P

Summary Introduction

To determine: The range of EBITDA/sales multiple for Company I.

Introduction:

The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The EBITDA values ranges from $9.075 to $13.875.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problems 1 in the textbook.

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 EBITDA values ranges from $9.075 to $13.875.

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Answer 5

Chapter 19, Problem 1P

Summary Introduction

To determine: The range of EBITDA/sales multiple for Company I.

Introduction:

The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The EBITDA values ranges from $9.075 to $13.875.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problems 1 in the textbook.

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 EBITDA values ranges from $9.075 to $13.875.

Answer 6

Chapter 19, Problem 1P

Summary Introduction

To determine: The range of EBITDA/sales multiple for Company I.

Introduction:

The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Expert Solution & Answer

Answer to Problem 1P

The EBITDA values ranges from $9.075 to $13.875.

Explanation of Solution

Given information:

The current sales are $75 million. Refer to Table 19.2 in Problems 1 in the textbook.

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 EBITDA values ranges from $9.075 to $13.875.

Answer 7

Chapter 19, Problem 1P

Summary Introduction

To determine: The range of EBITDA/sales multiple for Company I.

Introduction:

The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are 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 EBITDA values ranges from $9.075 to $13.875.

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 Problems 1 in the textbook.

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 EBITDA values 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

The range of EBITDA/sales multiple for Company I. Introduction: The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

To determine: The range of EBITDA/sales multiple for Company I. Introduction: The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.

Answer to Problem 1P

Explanation of Solution

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Chapter 19 Solutions

To determine: The range of EBITDA/sales multiple for Company I.

Introduction:

The primary way to estimate a firm’s value is by valuating the comparables. Multiples that are used in valuing the comparable are ratio of enterprise value to sales and price-earnings ratio.