Answer All 2 QUESTIONS PLZ

A. Blast Investment Limited (BIL) hired you to assist with the precedent transaction valuation of its organization as part of a merger/acquisition decision. Add Limited (AL) wants to acquire BIL using a mix of cash and one share of AL for every 4 shares of BILAL's share price closed at $50 on the day prior to the announcement AL is offering $10 cash per share. BIL's Chief Financial Officer provided the following data from the firm's accounting books.

Fully Diluted Shares Outstanding 150

Total Debt 1,450

Cash and cash equivalents 60

LTM EBIT 490

LTM EBITDA 570

LTM Sales 3,560

Calculate BILs offer price per share.

Calculate LGIs implied equity value.

Calculate LGIs implied enterprise value.

Calculate LTM transaction multiple EV/EBIT.

Calculate LTM transaction multiple EV/EBIT

Calculate LTM transaction multiple EV/Sales.

B. Emerson Investment Company (EIC) was asked to value B & D Logistics Company (BDLC) because the company wanted to restructure its operations. After market analysis, EIC recognized that given the limited number of companies within the logistics industry, the only option available was the Discounted Cash Flow. BDLC's terminal year EBITDA (2017E) is $925.65; the Exit multiple is 7.0x, the discount factor is 0.62. Using the data below compute the enterprise value for BDLC and apply the mid-year convention to discount the projected FCF. (9 Marks)

Projection Period
		2013	2014	2015	2016	2017
Unlevered cash Flow		$375.50	$390.60	$405.60	$425.70	$450.80
WACC	10%
Discount Period		0.5	1.5	2.5	3.5	4.5
Discount Factor		0.95	0.87	0.79	0.72	0.65