Using a 20 ebitda earnings before interest taxes


1. Use the following data for a home health firm to answer questions.

Net income after taxes $1,000,000

Depreciation 300,000

Interest 100,000

Capital Expenditures 400,000

Working Capital Expenditures 500,000

Long- Term Debt 1,000,000

Income Taxes 400,000

2. What is the current value of free cash flow?

3. Using a 20 EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), what is the value of the firm's equity?

Solution Preview :

Prepared by a verified Expert
Business Management: Using a 20 ebitda earnings before interest taxes
Reference No:- TGS02706903

Now Priced at $15 (50% Discount)

Recommended (91%)

Rated (4.3/5)