« previous next »

Author Question: The American Express Card is an example of a bank credit card. Indicate whether the statement is ... (Read 79 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?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

American Red Squirrel American Red Squirrel
Milestones of Gross Motor Development in Infancy Age ranges provided are for 90% of American infant Milestones of Gross Motor Development in Infancy Age ranges provided are for 90% of American infant
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
Parenting Styles Reported by a Representative Sample of American Adolescents Parenting Styles Reported by a Representative Sample of American Adolescents
North America American Dagger Moth Caterpillar North America American Dagger Moth Caterpillar
North American temperate deciduous forest. Forest soil profile at right. North American temperate deciduous forest. Forest soil profile at right.
Video: Parathyroid hormone (bone resorption) & Calcitonin (bone deposition)

For a complete list of videos, visit our video library