ABC is a publicly traded company listed on NASDAQ. In ABC's 10-Q and 10-K public statements, ABC disclosed that it recorded a $100 mil. pre-tax inventory write-off due to fire in the company's warehouse in 2015:Q2;it realized a $50 mil. pre-tax gain (other income on the sale of a non-core business in 2014:Q3; it additionally realized a $40 mil. pre-tax gain (other income on the sale of a non-core business and $20 mil. pre-tax restructuring costs in connection with a downsizing strategy in 2014:Q4. ABC company produced the following reported year-to-date(YTD) income statements during 2014-2015 period.

Reported YTD Income Statement 2014:03 2014:04 2015:03 Sales 3,500 4100 3600 COGS 2,200 2925 3000 Other Income 50 90 0 SG&A 675 700 120 Restructuring Charge 0 20 0 675 EBIT 545 480 75 Interest Expense 102 73 600 443 407 Pre-tax Income 228 168.34 154.66 Income Tax (38%) 372 275 252 Net Income tion abo ABC has 125 mil. basic outstanding shares, with current stock price of $45 per share. The company has the following information about the options/warrants Options/warrants Number of Shares (mil.) Tranche Exercise Price Tranche 1 10.00 $ 5.00 Tranche 2 7.50 $ 25.00 Tranche 3 5.00 $ 30.00 Tranche 4 2.50 $ 35.00 Tranche 5 1.00 $ 40.00 Tranche 6 0.50 $ 55.00 Q4. Given ABC's MCAP/Net Income(LTM) multiple of 7.5x, what is ABC's implied share price? (10 Points). O A $23.3 B. $11.0 O C. $9.3 O D. $16.5 Reported YTD Income Statement 2014:03 2014:04 2015:03 Sales 3,500 4100 3600 COGS 2,200 2925 3000 Other Income 50 90 0 SG&A 675 700 120 Restructuring Charge 0 20 0 675 EBIT 545 480 75 Interest Expense 102 73 600 443 407 Pre-tax Income 228 168.34 154.66 Income Tax (38%) 372 275 252 Net Income tion abo ABC has 125 mil. basic outstanding shares, with current stock price of $45 per share. The company has the following information about the options/warrants Options/warrants Number of Shares (mil.) Tranche Exercise Price Tranche 1 10.00 $ 5.00 Tranche 2 7.50 $ 25.00 Tranche 3 5.00 $ 30.00 Tranche 4 2.50 $ 35.00 Tranche 5 1.00 $ 40.00 Tranche 6 0.50 $ 55.00 Q4. Given ABC's MCAP/Net Income(LTM) multiple of 7.5x, what is ABC's implied share price? (10 Points). O A $23.3 B. $11.0 O C. $9.3 O D. $16.5