Bukola is working as a Valuation Analyst at Sebastian Corp is currently valuing a Private Limited company XXC, which manufactures computer components. As part of her analysis, she has decided to employ a Market-based approach to value XXC Pvt Ltd. Bukola has complied useful metrics to value the company using Multiple market values of invested capital to EBITDA of comparable guideline companies. Below is the useful information gathered by her.

 

• The Guideline Public companies' size and turnover are Larger than XXC and the MVIC to EBITDA of such Public companies on average is 9.6.
• A downward adjustment of 20% is required to reflect the relative risk and growth of XXC compared with Guideline Public companies.
• Few days ago, ABC Public Ltd company reported a 20 % Control premium in an offer to acquire XXC which will bring synergies to ABC in exchange for Cash.
• Normalized EBITDA of XXC reported as £24,000,000.
• Market Value of Debt of XXC reported as £4,000,000.

 

Considering the Normalized capital structure of XXC which is 1/3 Debt and 2/3 Equity. 

Calculate the Indicated Value of equity for XXC with full workings?