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:

Workforce Reduction

A strategic decision by an organization to decrease its number of employees to improve efficiency or reduce costs.

Laying Off

The temporary suspension or permanent termination of employment of an employee or group of employees for business reasons, such as economic downturns or organizational restructuring.

Peak Needs

Times when an organization requires additional resources or personnel to handle high volumes of work or special projects.

HR Practices

The strategies, policies, and methods implemented by the human resources department to manage and support an organization’s workforce effectively.