A firm has an EBIT of $41,300, depreciation of $1,200, interest of $850, and taxes of $210. The EBITDA multiple is 9.6. What is the value of the firm?

Respuesta :

Answer:

$408,000

Explanation:

For computing the value of the firm, first we have to determine the EBITDA which is shown below:

EBITDA = EBIT + Depreciation

             = $41,300 + $1,200

              = $42,500

And, the value of the firm would be equal to

Value of firm = EBITDA  × EBITDA multiple

                     = $42,500 × 9.6

                     = $408,000