**Question 990** Multiples valuation, EV to EBITDA ratio, enterprise value

A firm has:

**2** million shares;

$**200** million EBITDA expected over the next year;

$**100** million in cash (not included in EV);

**1/3** market debt-to-assets ratio is (market assets = EV + cash);

**4**% pa expected dividend yield over the next year, paid annually with the next dividend expected in one year;

**2**% pa expected dividend growth rate;

**40**% expected payout ratio over the next year;

**10** times EV/EBITDA ratio.

**30**% corporate tax rate.

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?