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The Industry Average mvic/ebitda ratio is 15

Finance

The Industry Average mvic/ebitda ratio is 15.50 for the guideline public companies. Assume the WACC of the subject company is 1.5% lower than that of its peers. Compute the adjusted mvic/ebitda ratio for the subject company. Round to the second decimal place.

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We know that,

Adjusted mvic/ebitda ratio is =(mvic/ebitda ratio)/(1-adjustment factor)

=15.50/(1-1.5%)

=15.50/0.985

=15.73