Pledrea Ltd has EBITDA at the forecast horizon of $10 000. Its EBITDA multiple is 12. What is the terminal value of the firm at the forecast horizon?
A)$130 000
B)$110 000
C)$100 000
D)$120 000

Question

Quizplus · Accepted Answer

Terminal value = EBITDA at the forecast horizon x EBITDA multiple 
Terminal value = $10 000 x 12 
Terminal value = $120 000

Therefore, the correct choice is D, which is $120 000.

Pledrea Ltd Has EBITDA at the Forecast Horizon of $10