Alternative Investments Q79

0. AKD private equity fund is considering purchasing a firm that had an EBITDA of PKR 400 billion. In the past year, three firms from the same industry were sold for 5x EBITDA, 6x EBITDA, and 7x EBITDA. Based on this information, the maximum value AKD is most likely to assign to the firm is:

  • Option : C
  • Explanation : The maximum value AKD is most likely to assign is that using the highest multiple (7 × PKR400 billion = PKR2,800 billion)
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