(1) Intrepid Enterprises is in three businesses and you have collected the following information on them (in millions): Division Steel Chemicals Finance Total Company Sales 800 600 600 2000 EBITDA 200 200 350 750 Net Income 80 120 100 300 BV of Equity Debt (Book & Market) 200 300 500 1,000 300 200 250 750 For the steel and chemical divisions, you have run regressions for EV/Sales against EBITDA/Sales and arrived at the following: Steel: EV/Sales = 0.80 + 4.80 (EBITDA/Sales) Chemicals: EV/Sales = 1.30 + 3.60 (EBITDA/Sales) For the financing division, your best regression is of PBV against return on equity: Finance: Price/Book value = 1.00+ 7.5 (Return on Equity) The company has 150 million shares outstanding and no cash balance. Based on above regressions, estimate the value of equity per share in Intrepid. (40 marks)