This workout asks us to calculate the terminal value implied EV/EBITDA multiple for the following company And then tells us cash flows fall at the middle of each year So we need to do three things here, we need to calculate the terminal value Then change that to an end of year terminal value, and then use that to calculate the multiple So we start with our terminal value, for that we take free cash flow in the final period, we multiply that by one plus the growth rate And divide all of that by WACC minus G, in this case WACC is given to us as a discount rate So the terminal value comes to 1,612 However we know that the cash flow that went in fell at the middle of the year That means we also know that this terminal value is also at the middle of the year At the moment, this at period 4.5 What we now need to do is make that an end of year terminal value, we're going to be dividing it by an end of year EBITDA So this needs to be an end of year terminal value We take the terminal value and we multiply it by, one plus the WACC to the power of 0.5 We want to grow this by half a year's worth of WACC. And that gives us 1,690.7 That is now a year 5 figure, I can now divide that by my year 5 EBITDA. And that get's me my final multiple of 5.0