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

question 67

Multiple Choice

Based upon the average EV/EBITDA ratio of the comparable firms, Loop's target economic value is closest to:

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

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Definitions:

Production Function

A mathematical model that describes the relationship between the inputs used in production and the output of goods or services produced.

Profit Maximization

The process in which a company calculates the most profitable pricing and production volume.

Production Function

An equation that describes the relationship between inputs used in production and the output generated from those inputs.

Factor Prices

The market prices of the inputs used in production, such as labor, capital, and land.