Answer the following questions about the case Mercury Athletic Footwear, Valuing the Opportunity.

$1.$ Estimate the value of Mercury for AGI using a multiples$-$based method. You should use both valuation multiples and transaction multiples. To do the former, you can start from the comparables given in the case. To do the latter, you will need to use Capital IQ to find information on acquisitions of targets in the footwear industry in $2006,$ and the first semester of $2007($or a similar time period$).$

$2.$ Estimate the value of Mercury for AGI using a discounted cash flow method. You will need to use the information given in the case to compute future cash flows for Mercury, estimate a discount rate and provide a valuation. Feel free to make reasonable assumptions, but you must explain and justify all of your assumptions.

$3.$ Given your analysis above, how much should AGI offer to pay for Mercury?