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anonymous
 5 years ago
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.............
anonymous
 5 years ago
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.............

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Owlfred
 5 years ago
Best ResponseYou've already chosen the best response.1Hoot! 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
 5 years ago
Best ResponseYou've already chosen the best response.0you 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.
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