This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Solve for Enterprise Value. i. EV = EBITDA x Multiple = $6.0 mm x 7.0 = $42 mm. c. Solve for Equity Value. i. Equity = EV – Debt + Cash. ii. Equity = $42 mm - $15 mm + $4.0 mm = $31 mm. 3. COMPANY C. a. Assumptions: i. Public company. ii. Cash: $30 million. iii. Debt (book value): $10 million. iv. Equity (market value): $5.0 million. v. EBITDA: $2.0 million. b. Solve for Enterprise Value. i. EV = Debt + Equity – Cash. ii. EV = $10 mm + $5.0 mm - $30 mm. iii. EV = -$15.0 mm. c. Solve for Equity Value. i. Same as the market value of the equity. ii. $5.0 mm....
View Full Document
This note was uploaded on 01/16/2010 for the course FBE 421 at USC.