API, Inc., is considering an investment in ETO, Inc. The EBITDA for ETO is currently $6.5 million, and similar deals have recently closed at a 4.5 multiple. The corporate tax rate is 21%. What is the estimated valuation for ETO, Inc.?
A) $292,500
B) $1,444,444
C) $2,925,000
D) $23,107,500
E) $29,250,000
Correct Answer:
Verified
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