What is the estimate of the business equity value

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Reference no: EM131615712

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

Reference no: EM131615712

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