QUESTION 5 of 10:Your uncle is offering to sell you his T-shirt printing business for 1M You think a multiple of 10X earnings (profit)is fair. His earnings are 69,000 per year. Should you buy it? a) Yes b) No

Question

QUESTION 5 of 10:Your uncle is offering to sell you his T-shirt printing business for 1M You think a multiple of 10X earnings (profit)is fair. His earnings are 69,000 per year. Should you buy it? a) Yes b) No

Answer 1

To determine whether you should buy the T-shirt printing business, we need to calculate the value based on the multiple of 10X earnings.Given:- Earnings =

69,000 * 10Fair value =

1,000,000Fair value =

1,000,000) is higher than the fair value ($690,000), it would be a good investment.Answer: a) Yes

Problemas

QUESTION 5 of 10:Your uncle is offering to sell you his T-shirt printing business for 1M You think a multiple of 10X earnings (profit)is fair. His earnings are 69,000 per year. Should you buy it? a) Yes b) No

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