Using the exam handout, assume Conglomerate Co sells Divisio…
Using the exam handout, assume Conglomerate Co sells Division C in a tax-free transaction on 12/31/2025 for $850 and the proceeds from the sale immediately go to Conglomerate Co’s cash balance. If Conglomerate Co’s share price remains at $35 per share as of 12/31/2025, what is the implied 2026E EBITDA multiple? Remember that after the divestiture, Conglomerate Co will remain a standalone company.