Autoserve Inc. is a US-based manufacturer and distributor of automobile parts and accessories. Recently, the company's management has been in discussions regarding diversifying the company's revenue streams and is considering the purchase of a privately-held European company called SnapTools which manufactures small handheld tools and bolts. Management is therefore seeking to estimate the value of SnapTools and has asked the company's finance team to determine the intrinsic value of the company's shares. The finance team has obtained the following data for their assessment: Tooltronic Inc. is a publicly traded company which is involved in the business of making handheld tools in Europe and as such is a good comparable for SnapTools. The following data applies to Tooltronic Inc: Tax Rate Market Capitalization in thousands Net debt in thousands Beta 12,000 35.5% 16,000 In Europe the nominal risk free rate of interest is around 4.5% The expected return on the equity market in Europe is 9%. 0.75