Question
ANSWER ALL THREE QUESTION PLZ A. Red Top Limited (RTL) is a highly successful manufacturing company. The company is preparing its 5-year strategy and wants
ANSWER ALL THREE QUESTION PLZ
A. Red Top Limited (RTL) is a highly successful manufacturing company. The company is preparing its 5-year strategy and wants to analyze its implied enterprise value using the comparable companies, EBITDA metric. The comparison uses LTM for 2017 and estimates for 2018 and 2019. Given the information in the table below, what are the implied value ranges for (RTL )? ( 6 Marks)
EBITDA | Metric | Multiple Range |
LTM | $ 800.00 | 8.00x - 8.50x; |
2018E | $850.00 | 7.25x - 7.75x; |
2019E | $890.8 | 6.75x - 6.95x |
B. OSO Inc requested your assistance to calculate the equity value and enterprise value from the data provided in the table below. (8 Marks)
S in millions, except per share data; shares in millions)
Description | Amount |
Current Share Price | $ 30 |
Fully Diluted Shares Outstanding | 100 |
Total Debt | 400 |
Preferred Stock | 50 |
Noncontrolling Interest | 20 |
Cash and Cash Equivalents | 60 |
c. ACT Ltd is assessing the equity value if it acquires TRY Ltd. TRY shareholders will receive one share of ACT Ltd common stock for every five shares of TRY common stock. Prior to the transaction, ACT's share price was $40 per share. TRY has 50 million shares outstanding. Based on these details calculate the equity value in this fixed exchange ratio structure .
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