A foreign Investor is interested in buying a majority interest in Fortuin (Pty) Ltd and you have been asked to determine the value of the company. You have identified Francke Lid (listed on the JSE), as a company that is comparable to Fortuin (Pty) Ltd. The following information is provided to you:

Fortuin (Pty) Ltd Francke Ltd Market price per share R0.50 each

Number of ordinary shares in issue R3.0 million R250 million

Market (or fair) value of debt R7.5 million R18.50 million

Earnings before interest, tax, R9.0 million R14.0 million depreciation. and amonsator (EBITDA)

Calculate the enterprise (or firm) value of Fortuin (Pty) Ltd using the enterprise value/EBITDA ratio (or multiple). Provide workings.

A. R85.18 million B. R34.15 milion C. R92.25 million D. R143.50 million