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:

Organizing Process

The organizing process involves arranging and structuring work to achieve organizational goals effectively and efficiently.

Unionized

Refers to workers or an organization that is part of a trade union, which negotiates wages, working conditions, and other employment terms.

Labour Relations Board

A government agency responsible for overseeing labor laws and resolving disputes between employers and unions.

Management Rights Clause

A section in a labor agreement that defines the rights and responsibilities of management to run and operate the company without interference.