Can anyone help me solve this...
Q.3 A firm has reached an agreement with target acquisition to use a comparable firms EBITDA multiple in
determining the targets multiple. The comparable firm has similar profitability measures but differing growth
rates and cost of capital.
Comparable
Firm
Mebitda 18
WACC 15%
Growth 8%
Target Firm
WACC 18%
Growth 6%
Given the Comparable Firm’s and the Target’s financial data in the Table estimate the Mebitda ( EBITDA Multiple
for the Target firm )
Thanks in advance.............

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga.
Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus.
Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

Get our expert's

answer on brainly

SEE EXPERT ANSWER

Get your **free** account and access **expert** answers to this

and **thousands** of other questions.

- anonymous

- chestercat

See more answers at brainly.com

Get this expert

answer on brainly

SEE EXPERT ANSWER

Get your **free** account and access **expert** answers to this

and **thousands** of other questions

- Owlfred

Hoot! You just asked your first question! Hang tight while I find people to answer it for you. You can thank people who give you good answers by clicking the 'Good Answer' button on the right!

- anonymous

no sorry

- anonymous

you need to run a regression where u use as independent variables, tax,depreciation,reinvestment rate,growth and beta(systematic risk). the dependent should be Enterprise value/EBITDA . When u obtain the regression coefficients plug those numbers that belong to your firm to get the target EV/EBITDA ratio.

Looking for something else?

Not the answer you are looking for? Search for more explanations.

## More answers

Looking for something else?

Not the answer you are looking for? Search for more explanations.