« previous next »

Author Question: The American Express Card is an example of a bank credit card. Indicate whether the statement is ... (Read 96 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?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Young American Alligators basking Young American Alligators basking
Adrian Piper, My Calling (Card) #1 (for Dinners and Cocktail Parties). Adrian Piper, My Calling (Card) #1 (for Dinners and Cocktail Parties).
A hydrometer is used to measure the American Petroleum Institute (API) specific gravity of diesel ... A hydrometer is used to measure the American Petroleum Institute (API) specific gravity of diesel ...
North American Climates North American Climates
American Government: Roots and Reform, AP* Edition, 12th Edition American Government: Roots and Reform, AP* Edition, 12th Edition
The Kinsey Report on American Women The Kinsey Report on American Women
Video: Control of ventilation rate by other brain centers (posts, hypothalamus & cerebral cortex)

For a complete list of videos, visit our video library