Criteria: Company A has agreed to buy Company B for $20.00/share in stock Company A and Company B's stock prices on the day before announcement were $35.00 and $16.00 respectively Company B has 15,000 shares outstanding, 2,000 exercisable options outstanding with an average exercise price of $7.50, $150,000 in net debt to be assumed by Company A and minority interests of $25,000 to be acquired for cash Company B Income Statement Items LTM Revenue LTM EBITDA LTM Net Income $625,000 40,000 14,440 Calculate: Implied Exchange Ratio Premium Paid Enterprise and Equity Values of transaction Multiples of Revenues, EBITDA and Net Income