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Ingenious Corporation Is Evaluating an Opportunity to Make an Investment

Question 38

Multiple Choice

Ingenious Corporation is evaluating an opportunity to make an investment in Binary Bits, Inc. The EBITDA for Binary Bits is currently $19 million, and similar deals have recently closed at a 6.0 multiple. The corporate tax rate is 21%. What is the estimated valuation for Binary Bits, Inc.?


A) $114,000
B) $900,600
C) $1,140,000
D) $114,000,000
E) $542,857,143

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