a. What is the enterprise value of the firm (using the terminal growth method)? _____________

b. What is the enterprise value of the firm (using the terminal multiple method)? _____________

c. What is the share price estimate (using the terminal growth method)? _____________

d. What is the share price estimate (using the terminal multiple method)? _____________

e. What is the implied terminal EBITDA multiple when looking at the terminal growth method? _____________

f. What is the implied terminal growth rate when looking at the terminal multiple method? _____________

g. What is the implied current EBITDA multiple (using the terminal growth method)? _____________

h. What is the implied current EBITDA multiple (using the terminal multiple method)? _____________

1) Valuation [26 points]: You are comfortable with the pro forma information below. Assume that we are at the beginning of FY 2020, and we want to use the mid-year convention. thousands Amounts in Reveme COGS Gross Profits 2019 76,045 (28,821) 47 224 2020 106,649 (40,526) 66.123 2021 139,111 (53,558) 85,553 2022 169,304 (66,028) 103,276 2023 185,691 (72,790 112,901 2024E 196,799 (77,342) 119.457 SG&A EBIT (38.022) 9.202 (50,125) 15.998 (62,600 22.953 (74,493) 28,783 (79,847) 33,054 (82,655) 36.802 (1,048) Interest expense EBT (971) 15,027 (971) 21.982 (1,053) 27,730 (1,045) 32,009 (1,044) 35,758 8.154 Provision for taxes Net Income (1,506 6,648 (3,080 11,947 (4,500 17,476 (5,684) 22,046 (6,561) 25,448 (7,330 28,428 15,997 20.866 22,856 24,139 25,387 Relevant Balance Sheet items Required cash Excess cash Accounts receivable Inventory Total current assets 10,646 3,691 6,458 5,369 26,164 12,987 8,765 7,661 32,423 11,052 10,271 42,189 12,843 14,244 14,159 52,542 15,096 15,256 55,739 48,686 1,943 2,641 3,346 Accounts payable Notes payable Total current liabilities 1,342 272 1,614 3,920 40 266 358 3,689 164 3,853 172 2,209 2,999 3,518 3,960 Net PP&E Long term debt 27,652 15,725 38,088 15,725 48,811 17,000 58,380 17,000 62,946 17,000 66,711 17,000 Depreciation 1,256 2 ,239 3,047 3 ,856 4,553 4,909 Other relevant information WACC Teminal growth rate Corporate tax rate Number of shares outstanding thousands) Terminal EBITDA multiple (for terminal multiple method) 10.85% 3.60% 20.5% 4,299 9.23x 1) Valuation [26 points]: You are comfortable with the pro forma information below. Assume that we are at the beginning of FY 2020, and we want to use the mid-year convention. thousands Amounts in Reveme COGS Gross Profits 2019 76,045 (28,821) 47 224 2020 106,649 (40,526) 66.123 2021 139,111 (53,558) 85,553 2022 169,304 (66,028) 103,276 2023 185,691 (72,790 112,901 2024E 196,799 (77,342) 119.457 SG&A EBIT (38.022) 9.202 (50,125) 15.998 (62,600 22.953 (74,493) 28,783 (79,847) 33,054 (82,655) 36.802 (1,048) Interest expense EBT (971) 15,027 (971) 21.982 (1,053) 27,730 (1,045) 32,009 (1,044) 35,758 8.154 Provision for taxes Net Income (1,506 6,648 (3,080 11,947 (4,500 17,476 (5,684) 22,046 (6,561) 25,448 (7,330 28,428 15,997 20.866 22,856 24,139 25,387 Relevant Balance Sheet items Required cash Excess cash Accounts receivable Inventory Total current assets 10,646 3,691 6,458 5,369 26,164 12,987 8,765 7,661 32,423 11,052 10,271 42,189 12,843 14,244 14,159 52,542 15,096 15,256 55,739 48,686 1,943 2,641 3,346 Accounts payable Notes payable Total current liabilities 1,342 272 1,614 3,920 40 266 358 3,689 164 3,853 172 2,209 2,999 3,518 3,960 Net PP&E Long term debt 27,652 15,725 38,088 15,725 48,811 17,000 58,380 17,000 62,946 17,000 66,711 17,000 Depreciation 1,256 2 ,239 3,047 3 ,856 4,553 4,909 Other relevant information WACC Teminal growth rate Corporate tax rate Number of shares outstanding thousands) Terminal EBITDA multiple (for terminal multiple method) 10.85% 3.60% 20.5% 4,299 9.23x