Which Australian institution is in charge of monetary policy?

The Australian central bank implements monetary policy by directly controlling which interest rate?

A firm has 20 million shares, earnings (or net income) of $100 million per annum and a 60% debt-to-**equity** ratio where both the debt and asset values are market values rather than book values. Similar firms have a PE ratio of 12.

Which of the below statements is **NOT** correct based on a PE multiples valuation?

**Question 990** Multiples valuation, EV to EBITDA ratio, no explanation

A firm has 2 million shares, expected EBITDA at the end of this year of $200 million per annum, $100 million in cash (not included in EV) and its market debt-to-assets ratio is 1/3. (market assets = EV + cash). Next year’s expected dividend yield is 4% pa, the expected dividend growth rate is 2% pa, next year’s expected payout ratio is 40% and the corporate tax rate is 30%. Dividends are paid annually.

Similar firms have an EV/EBITDA ratio of 10.

The stock can be valued using the EV/EBITDA multiple, dividend discount model, Gordon growth model or PE multiple.

Which of the below statements is **NOT** correct based on an EV/EBITDA multiple valuation?