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Management · Q860

Financial Management

Graduate and Post Graduate · Management · question 860

Q860

In market analysis, market multiple is multiplied by firm earning before interest, taxes, depreciation and amortization to calculate

A.
market total value
B.
firm total value
Answer
C.
industry value
D.
taxes value

Answer: Option B

Solution

Answer: Option B
Solution:
In market analysis, market multiple is multiplied by firm earning before interest, taxes, depreciation and amortization to calculate firm total value. The value of the firm is measured as the sum of the value of the firm's equity and the value of the debt.