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2. Choice of valuation methods: What do you think PacifiCorp is worth on its own before its acquisition by Berkshire? Which valuation method should you

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2. Choice of valuation methods: What do you think PacifiCorp is worth on its own before its acquisition by Berkshire? Which valuation method should you use to value PacifiCorp and why? Show clearly the steps to arrive at the following estimates in Exhibit 10: Enterprise Value as Multiple of. MV Equity as Multiple of: Revenue EBIT EBITDA Net Income EPS Book Value Median 6,252 8,775 9.023 7.596 4.277 5,804 Mean 6.584 9,289 8.076 7.653 4,308 5.678 If you need to use a discount rate to discount cash flows then an appropriate discount rate estimate for PacifiCorp is approximately 9%

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