1) Multiples analysis: It is 15 August 2017, and your company is considering the possibility of purchasing the OfficeExpress business from Supplies Ltd. Since Office Express does not have publicly traded shares of its own, you have decided to use TopOffice as a comparable company to help you determine the market value of OfficeExpress. This morning, TopOffice ordinary shares were trading at $8.15 per share, and the company had 1.89 billion shares outstanding. You estimated that the market value of all the company's other outstanding securities is $100 billion. Its revenues from sales were $143.3 billion last year. OfficeExpress revenue in 2016 was $62.2 billion. Based on the enterprise value/ revenue ratio, what is the total value of OfficeExpress that is implied by the TopOffice market values?

2) Break-even: You have started a business that sells a home gardening system that allows people to grow vegetables on the bench in their kitchens. You are considering two options for marketing your product. The first is to advertise on local TV. The second is to distribute flyers in the local community. The TV option, which costs $50,000 annually, will promote the product more effectively and create a demand for 1,200 hundred units per year. The flyer advertisement costs only $6,000 annually but will create a demand for only 250 units per year. The price per unit of the indoor gardening system is $100, and the variable cost is $60 per unit. Assume that the production capacity is not limited and that the marketing cost is the only fixed cost involved in your business. What are the break-even points for both marketing options? Which one should you choose?

3) Going-concern value: Ringwood Motors is a chain of used car dealerships that has publicly traded shares. Using the adjusted book value approach, you have estimated the value of Ringwood Motors to be $45,646,000. The company has $40.5 million of debt outstanding. Its share price is $5.5 per share, and there are 1,378,000 shares outstanding. What is the going concern value of Ringwood Motors? Use the following information concerning Johnson Machine Tools Ltd in this problem. Johnson's income statement from the fiscal year that ended this past December is: