Assume That a Venture Is Expected to Have an EBITDA

question 29

Multiple Choice

Assume that a venture is expected to have an EBITDA of $1,500,000 at the end of five years from now. If the venture's value is expected to be $12,000,000, what valuation multiple was being assumed?

• A)12 times
• B)4 times
• C)8 times
• D)10 times

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Definitions:

Union Dues

Fees paid by workers to a union for membership and representation.

State Sales Tax

A tax imposed by a state on sales of goods and services, collected by the seller and passed on to the state government.

Sales Taxes Payable

A liability account that represents the amount of sales tax collected from customers by a business, which is owed to the government.