Same setup (EBITDA = 100, Debt/EBITDA = 6x), but now you do not have the EV/EBITDA multiple. Instead you know Debt is 70% of the capital structure and Equity is 30%. Solve for Equity Value.

Question

IBPrep · Accepted Answer

Knowing that the company is levered 6x will still get you $600 in Debt.
7 equals $857.

Same setup (EBITDA = 100, Debt/EBITDA = 6x), but now you do not have the EV/EBITDA multiple. Instead you know Debt is 70% of the capital structure and Equity is 30%. Solve for Equity Value.

Answer

More Valuation interview questions

Same setup (EBITDA = 100,