Assume that a business has an EBIT of $10 million, interest expense of $2 million, and depreciation expense of $1 million. Furthermore, its market multiple based on EBITDA as the value proxy is 6.5. What is the estimate of the business’s equity value?
$84.5 million
$78.0 million
$71.5 million
$65 million
$58.5 million