Based Upon the Average EV/EBITDA Ratio of the Comparable Firms

question 91

Multiple Choice

Based upon the average EV/EBITDA ratio of the comparable firms, if Loop holds $6.5 million of cash in excess of its working capital needs, then Loop's target market value of equity is closest to:

• A)$155 million
• B)$193 million
• C)$157 million
• D)$191 million
• E)$165 million

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Definitions:

Perceptual Vigilance

The tendency for individuals to notice stimuli that are relevant to their current needs or desires more than irrelevant stimuli.

Stimuli Registered

The process by which sensory input is received, recognized, and processed by the brain.

Gestalt Psychology

A psychological approach that emphasizes the whole of anything is greater than its parts, focusing on perception and problem-solving.

Holistic Processing

Holistic processing is perceiving an object or scene as a whole rather than as a collection of individual components, often used in the context of recognizing faces or visual patterns.