Consider recent financials for Ellie's Essentials LLC: Balance Sheet 2018 2017 $11,197.00 $10,000.00 Current Assets Net PPE $31,000.00 $30,000.00 Total Assets $42,197.00 $40,000.00 Current Liabilities $8,690.00 $8,000.00 $13,622.00 $12,000.00 Long-term debt $22,312.00 $20,000.00 Total Liabilities Shareholder Equity $19,885.00 $20,000.00 Liabilities and Equity $42,197.00 $40,000.00 Income Statement 2018 2017 $11,000.00 $10,000.00 SALES $4,000.00 $4,400.00 COGS $6,600.00 $6,000.00 GROSS PROFIT S&A $1,100.00 $1,000.00 $550.00 $500.00 Depreciation $4,950.00 $4,500.00 BIT $1,272.00 $1,200.00 INTEREST $3,678.00 $3,300.00 T TAXES (40.00%) $1,471.20 $1,320.00 $2,206.80 $1,980.00 NET INCOME Going forward, analysts have forecasted the following free cash flows: $2,600.00 in 2019, and $2,600.00 in 2020. After that point, analysts expect free cash flows to grow at 3.00 % The firm has no short-term debt or preferred stock, and there are 1,000 shares outstanding. The firm's cost of capital is 12.00% You are trying to estimate the value of Doc McRuffins Incorporated. It is a rival firm to Ellie's Essentials, but not publicly traded. You do know that Doc McRuffins has an EBITDA of $4,750 for 2018. Using multiples, what is a rough estimate for the enterprise value of Doc McRuffins Consider recent financials for Ellie's Essentials LLC: Balance Sheet 2018 2017 $11,197.00 $10,000.00 Current Assets Net PPE $31,000.00 $30,000.00 Total Assets $42,197.00 $40,000.00 Current Liabilities $8,690.00 $8,000.00 $13,622.00 $12,000.00 Long-term debt $22,312.00 $20,000.00 Total Liabilities Shareholder Equity $19,885.00 $20,000.00 Liabilities and Equity $42,197.00 $40,000.00 Income Statement 2018 2017 $11,000.00 $10,000.00 SALES $4,000.00 $4,400.00 COGS $6,600.00 $6,000.00 GROSS PROFIT S&A $1,100.00 $1,000.00 $550.00 $500.00 Depreciation $4,950.00 $4,500.00 BIT $1,272.00 $1,200.00 INTEREST $3,678.00 $3,300.00 T TAXES (40.00%) $1,471.20 $1,320.00 $2,206.80 $1,980.00 NET INCOME Going forward, analysts have forecasted the following free cash flows: $2,600.00 in 2019, and $2,600.00 in 2020. After that point, analysts expect free cash flows to grow at 3.00 % The firm has no short-term debt or preferred stock, and there are 1,000 shares outstanding. The firm's cost of capital is 12.00% You are trying to estimate the value of Doc McRuffins Incorporated. It is a rival firm to Ellie's Essentials, but not publicly traded. You do know that Doc McRuffins has an EBITDA of $4,750 for 2018. Using multiples, what is a rough estimate for the enterprise value of Doc McRuffins