Luca & Sons Inc has interest-bearing debt of $1,750,000, EBITDA of $2,000,000, and gross revenues of $4,000,000. In order to compute the estimated enterprise value, Luca & Sons Inc uses a comparable firms EBITDA multiple of 8. What is Luca & Sons Inc's estimated “equity value”?Luca & Sons Inc has interest-bearing debt of $1,750,000, EBITDA of $2,000,000, and gross revenues of $4,000,000. In order to compute the estimated enterprise value, Luca & Sons Inc uses a comparable firms EBITDA multiple of 8. What is Luca & Sons Inc's estimated “equity value”?

A.

$20,000,000

B.

$18,250,000

C.

$14,250,000

D.

$12,000,000

E.

$16,000,000

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