hard · Investment Banking
A company has an 8.0x EV/EBITDA multiple. If its EBITDA grows by 10% and its Enterprise Value remains constant, what happens to the multiple?
- The multiple increases to 8.8x.
- The multiple decreases to 7.0x.
- The multiple remains 8.0x because the Enterprise Value is unchanged.
- The multiple decreases to approximately 7.3x.
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