« previous next »

Author Question: The American Express Card is an example of a bank credit card. Indicate whether the statement is ... (Read 45 times)

swpotter12

  • Hero Member
  • *****
  • Posts: 527
on: Jul 11, 2018
The American Express Card is an example of a bank credit card.
 
  Indicate whether the statement is true or false

Question 2

Creative Centers Inc. has an EBIT of 200,000, 30,000 in depreciation, 450,000 in outstanding debt, a forward-looking EV/EBITDA multiple of 7.50, and an estimated cost of capital of 10. Use the EV/EBITDA approach to value the firm.
 
  A) 837,500
  B) 950,000
  C) 1,100,000
  D) 1,275,000


underwood14

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jul 11, 2018
Answer to Question 1

FALSE

Answer to Question 2

D
Explanation: D) EV = Multiple  EBITDA, then, Ve = EV - Vd
=7.5  230,000 = 1,725,000 - 450,000 = 1,275,000.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

swpotter12

  • Hero Member
  • *****
  • Posts: 527
Reply #2 on: Jul 11, 2018
Thank you :)


underwood14

  • Sr. Member
  • ****
  • Posts: 346
Reply #3 on: Jul 11, 2018
Happy to help you


« previous next »
 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

The “Pineapple Express” The “Pineapple Express”
An 1891 cartoon blames immigrants for the ills of American society: anarchy, socialism, mayhem, and An 1891 cartoon blames immigrants for the ills of American society: anarchy, socialism, mayhem, and
Angry jeers from whites rain down on Elizabeth Eckford, one of the first African American students ... Angry jeers from whites rain down on Elizabeth Eckford, one of the first African American students ...
In 1979 Islamic militants held American embassy workers hostage in Tehran. In 1979 Islamic militants held American embassy workers hostage in Tehran.
Piggy bank Piggy bank
Video: Protein digestion - stomach & small intestine

For a complete list of videos, visit our video library