Company Xs WACC is 9%, and Company Ys WACC is 11%. You have been hired as a valuation consultant for the deal. These are your estimates along with other information for Company Y:

• Next years estimated EBIT = $30 million. After next year, EBIT is expected to grow at 4% forever.

• Depreciation is 10% of EBIT

• Net capital spending is 12% of EBIT

• Change in net working capital is 15% of EBIT

• Zero cash on the balance sheet

• 200,000 shares outstanding

• Debt is $150 million and yearly interest expense is $14 million

• Company Y pays tax at the 38% level

Company Xs board hires another M&A consultant that believes that Company Y terminal value for next year

should be based on an EV/EBITDA multiple. She believes that firms in Company Ys sector will have EV/EBITDA

= 6 next year. Following this consultants guidance, how much should Company X now pay for Company Y?