Extra Value Inc. is expected to generate EBIT of $20 million next year, with anticipated depreciation and amortization of $3 million. Extra Value has debt of $40 million.

Extra Value Inc. is expected to generate EBIT of $20 million next year, with anticipated depreciation and amortization of $3 million. Extra Value has debt of $40 million. Comparable firms are trading at average forward-looking EV/EBITDA ratios of five times. Based on the EV/EBITDA method, estimate the value of Extra Value’s equity.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"FIRST15"

Order Now