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.
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.............
Stacey Warren - Expert brainly.com
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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.