14.3 Valuation by comparables. The Light Motors Company (LMC) is privately held. Its owners are thinking of listing at least 45 percent of their company's equity on the local stock exchange. Thus, they wish to estimate the value of their company using financial data drawn from the Rapid Engine Corporation (REC), a company listed on the local stock market and comparable to LMC in assets and financial structures. Based on the data given belowe provide three estimates of LMC's value. Why do they differ from each other? NANCE FOR EXECUTIVES REC LMC $250 million $125 million Earnings before interest, tax, depreciation, and amortization $ 90 million $ 46 million Earnings after tax Debt $420 million $800 million Cash $ 4 million $ 10 million Book value of equity $270 million $590 million Number of shares outstanding Not available 40 million Share price Unlisted 30