A Firm Has an EBITDA Forecast of $150,000 in 5

question 51

Multiple Choice

A firm has an EBITDA forecast of $150,000 in 5 years.If its EBITDA multiple is 9 and the discount rate is 5%,what is the PV of the firm's terminal value?

• A)$1.06 million
• B)$1.35 million
• C)$1.15 million
• D)$150,000
• E)$117,530

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Definitions:

Collectivist Construals

Interpretations or perceptions that emphasize the importance of community, shared goals, and group cohesion over individual goals.

Enculturation

The process by which individuals learn and adopt the behaviors, customs, values, and norms of their own culture through unconscious absorption during childhood.

Acculturation

The process through which individuals or groups from one culture come to adopt the practices and values of another culture while still maintaining their original cultural identities.

Assimilation

The process by which a person or a group's language and/or culture come to resemble those of another group, often involving the loss of the original linguistic or cultural characteristics.