Company A is currently trading at a P/E ratio of 15x. It acquires a business with $10 million in EBITDA using 100% debt financing at a cost of debt of 10%. How much can it pay and still maintain its 15x P/E ratio?
Can anyone explain what the answer would be? Company A is currently trading at a P/E ratio of 15x. It acquires a business with $10
million in EBITDA using 100% debt financing at a cost of debt of 10%. How much can it
pay and still maintain its 15x P/E ratio?
Assume that subway tokens are $1.50 today and