Company Hoboken (H) Inc. is considering acquiring Company Union City (UC) Inc. in a merger deal. The financial details of both companies are as follows (If you think appropriate, please feel free to make additional assumptions.): Company Hs Financial Details: Current Market Capitalization: $800 million Annual Revenue: $150 million Net Profit Margin: 10% Total Debt: $200 million Cash and Cash Equivalents: $50 million Interest: $10 million Depreciation and Amortization: $35 million Company UCs Financial Details: Current Market Capitalization: $600 million Annual Revenue: $120 million Net Profit Margin: 8% Total Debt: $150 million Cash and Cash Equivalents: $30 million Interest: $10 million Depreciation and Amortization: $25 million The companies have agreed on a purchase price of $1.2 billion for Company UC. Calculate the following financial metrics to help Company A evaluate the potential merger: 1. EBIT, Depreciation, and Amortization (EBITDA) Multiples: o Calculate the EBITDA for both companies. o Determine the EBITDA multiples for Company H and Company UC. o Comment on the valuation based on EBITDA multiples. 2. Debt-to-Equity Ratio Post-Merger: o Calculate the Debt-to-Equity ratio for both companies individually. o Determine the Debt-to-Equity ratio for the combined entity post-merger. o Analyze the impact of the merger on the leverage of the combined company. 3. Net Profit Margin Post-Merger: o Calculate the Net Profit for both companies individually. o Determine the Net Profit Margin for the combined entity post-merger. o Discuss the potential impact of the merger on the overall profitability. 4. Cash Position Post-Merger o Calculate the Net Cash position (Cash and Cash Equivalents minus Total Debt) for both companies individually. 8 o Determine the Net Cash position for the combined entity post-merger. o Evaluate the liquidity position of the combined company post-merger. Assume that the financial figures provided are the most recent fiscal year, and any calculations should be rounded to the nearest million for expositional simplicity.

Company Hoboken (H) Inc. is considering acquiring Company Union City (UC) Inc. in a merger deal. The financial details of both companies are as follows (If you think appropriate, please feel free to make additional assumptions.): Company H s Financial Details: - Current Market Capitalization: \$800 million - Annual Revenue: $150 million - Net Profit Margin: 10% - Total Debt: \$200 million - Cash and Cash Equivalents: 550 million - Interest: \$10 million - Depreciation and Amortization: S35 million Company UC's Financial Details: - Current Market Capitalization: $600 million - Annual Revenue: $120 million - Net Profit Margin: 8% - Total Debt: $150 million - Cash and Cash Equivalents: S30 million - Interest: \$10 million - Depreciation and Amortization: \$25 million The companies have agreed on a purchase price of $1.2 billion for Company UC. Calculate the following financial metrics to help Company A evaluate the potential merger