The current financial industry EBITDA multiple is 35. EBITDA will grow by 3% in the next 5 years. The current EBITDA is $30million The Industry multiple will increase to 54x. WACC is 9%. The probability that the company will not make it is 10%. What is the expected Enterprise value of the company.
a.947.60
b.614.19
c.1,039.53
d. none of the above

The current financial industry EBITDA multiple is 35. EBITDA will grow by 3% in the next...
If the economy is going into a recession, a good industry to invest in would be the __________ industry. Multiple Choice medical services automobile banking construction An industry analysis for manufacturers of a small personal care gadget observed the following characteristics: Industry sales have grown at 15%-20% per year in recent years and are expected to grow at 10%-15% per year over the next 3 years, still well above the economic growth rate. Some U.S. manufacturers are attempting to enter...
Sheridan Corp. is expected to grow rapidly at a rate of 35 percent for the next seven years. The company's first dividend, to be paid three years from now, will be $5. After seven years, the company (and the dividends it pays) will grow at a rate of 7.6 percent. What is the value of Sheridan stock with a required rate of return of 14 percent? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.)
Diaz Corp. is expected to grow rapidly at a rate of 35 percent for the next seven years. The company's first dividend, to be paid three years from now, will be $5. After seven years, the company (and the dividends it pays) will grow at a rate of 8.07 percent. What is the value of Diaz stock with a required rate of return of 14 percent? (Round intermediate calculations to 3 decimal places, e.g. 15.251 and final answer to 2...
You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,170,000 this year. Depreciation, the increase in net working capital, and capital spending were $241,000, $106,000, and $495,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 per year, and NWC will grow at 10 per year. The company currently has $18,300,000 in debt and 380,000...
You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,170,000 this year. Depreciation, the increase in net working capital, and capital spending were $241,000, $106,000, and $495,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 per year, and NWC will grow at 10 per year. The company currently has $18,300,000 in debt and 380,000...
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need a correct answer
You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,170,000 this year. Depreciation, the increase in net working capital, and capital spending were $241,000, $106,000, and $495,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 per year, and NWC will grow at 10 per year. The company currently has...
You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,130,000 this year. Depreciation, the increase in net working capital, and capital spending were $239,000, $104,000, and $485,000, respectively. You expect that over the next five years, EBIT will grow at 20 percent per year, depreciation and capital spending will grow at 25 per year, and NWC will grow at 15 per year. The company currently has $17,900,000 in debt and 515,000...
You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,130,000 this year. Depreciation, the increase in net working capital, and capital spending were $239,000, $104,000, and $485,000, respectively. You expect that over the next five years, EBIT will grow at 20 percent per year, depreciation and capital spending will grow at 25 per year, and NWC will grow at 15 per year. The company currently has $17,900,000 in debt and 515,000...
Problem 12-26 Adjusted Cash Flow From Assets [LO3] You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,170,000 this year. Depreciation, the increase in net working capital, and capital spending were $241,000, $106,000, and $495,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 per year, and NWC will grow at 10 per year. The...
Question 25 (0.2 points) Symbyrec Phonic, an electronics manufacturer, is expected to grow rapidly in the next five years and then have a stable growth rate for the foreseeable future. The firm expects free cash flows of $262.5 million next year. These cash flows are expected to grow at a 30 percent rate over the following four years, and thereafter its cash flows will grow at a steady rate of 6 percent per annum. The company has nonoperating assets (NOA)...