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Company A has agreed to buy Company B for $58.00/share in stock. Company A and Company B's stock prices on the day before announcement were

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Company A has agreed to buy Company B for $58.00/share in stock. Company A and Company B's stock prices on the day before announcement were $125.00 and $47.00 respectively. Company B has 20 million shares outstanding, 12 million exercisable options outstanding with an average exercise price of $35.00 per share, $120 million in net debt to be assumed by Company A and minority interests of $25 million to be acquired for cash. Company B Income Statement Items LTM Revenue $1000 million LTM EBITDA 95 million LTM Net Income 60 million Calculate the enterprise to revenue multiple. O 1.473 1.855 1.581 O 1.325

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