« previous next »

Author Question: The American Express Card is an example of a bank credit card. Indicate whether the statement is ... (Read 67 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?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

This portrait of Thomas Jefferson is considered an accurate likeness, painted when he was thirty-sev This portrait of Thomas Jefferson is considered an accurate likeness, painted when he was thirty-sev
American soldiers—some of them regulars in deep blue uniforms, others in buckskin cowboy outfits— fi American soldiers—some of them regulars in deep blue uniforms, others in buckskin cowboy outfits— fi
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
Example of Reconciling a Bank Statement Cont. Example of Reconciling a Bank Statement Cont.
PMDD Diagnostic Criteria from the American Psychiatric Association PMDD Diagnostic Criteria from the American Psychiatric Association
A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ... A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ...
Video: Interview with an Anorexic Woman (Part 2 of 2)

For a complete list of videos, visit our video library