An investor is valuing the Company OUT which has 5000 equity shares and the following expected key financial measures for year-end 2021 (Table 2): Table 2 Enterprise value 70000 Level of cash 8000 Level of interest bearing debt 22000 Minority interest 3750 Financial Investments 2300 2021 Book Value Per Share (BVS) 5.25 Additionally, the investor has collected the following information about a set of comparable listed companies with similar leverage and other relevant fundamentals (Table 3): Table 3 Company Current market price per share (BVS 2021 () B 9.0 7.50 10.7 8.50 9.20 D 8.3 Round your computations to one decimal place (e.g. present 1.56 as 1.6). "Continues on next page..." a. What is the expected 2021 price-to-book (PBV) multiple of company OUT implied in investor's expectations? Explain your answer. [10 marks] b. Considering the information of the expected 2021 PBV multiple of the set of comparable companies, what is your conclusion about the relative valuation of company OUT? Explain your answer. [10 marks] C. Some fundamental variables impact on the PBV multiple and should be taken into account when carrying out a relative valuation exercise based on this multiple. Give two examples of such variables, explaining your answer (no need for computations). [10 marks]