1. What is the actual P/E multiple paid by Amazon as a function of projected earnings to acquire Whole Foods? Assumptions: EPS 2016 $1.55, EPS growth rate of 5%, 320 million shares outstanding at 9/25/2016, $42 per share price actually paid by Amazon.

a. 25.8x

b. 18.5x

c. 20.0x

d. None of these

2. What is the implied enterprise value of Whole Foods as an acquisition target (where Enterprise Value = Net Debt + Market Equity Value), using the projected industry average P/E multiple. Assumptions: EPS 2016 $1.55, projected industry average P/E multiple of 20x, EPS growth rate of 5%, 320 million shares outstanding at 9/25/2016, $42 per share price actually paid by Amazon, net debt of $0.3 bln.

a. $13.4 bln

b. $13.7 bln

c. $10.7 bln

d. $9.6 bln