12. MGL Limited has EPS of US$7.35 and EBITDA of US$75.23 million.

MGL Limited has 11.5 million shares outstanding and debt of US$350 million (net cash). As a financial analyst, you believe VNL Limited is comparable to MGL Limited in terms of underlying business, but VNL Limited has no debt. If VNL Limited has a price earnings ratio of 21.35 and an enterprise value to EBITDA multiple of 9.23.

(a) Estimate the value of MGL Limited’s shares using both multiples?

(b) Indicate which estimate is likely to be more accurate.