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Question 19 You want to purchase a high growth, cash flowing company for 10X EBITDA. Last years EBITDA was $2,000,000. You w
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Answer:

EBITDA multiple =10
EBITDA=$2,000,000
Price=$2,000,000*10=$20,000,000

EBITDA at end of 5 years=2,000,000*(1.05^5)
=$2,552,563

sale price=$2,552,563*10=$25,525,630

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