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Medium
A company has EV/EBITDA = 10x, Net Debt/EBITDA = 4x, and Equity Value = $300M. What's net debt?
Answer
EV = Equity + ND, so EV/EBITDA = (Equity + ND)/EBITDA = 10, and ND/EBITDA = 4. Debt is therefore 4/10 of EV.
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multiplesnet debt