It is January of 2020. Rapid Corporation is in the process of acquiring Tamed Inc. Tamed Inc. has two divisions: oil and gas and retail grocery. The current number of outstanding shares is 200.

1. (4 marks) Which companies (Choose from the provided list) should you include in your analysis? Explain!
2. (8 marks) What do you recommend for the total value of the oil and gas division? What about the retail grocery division? Explain how you collect the required information.
3. (4 marks) The management of Tamed Inc. has informed Rapid Corporation that the Cost of goods sold for the retail grocery division was abnormally high this year due to the temporary closure of one of the local suppliers. We expect a much lower cost of goods sold for that division in the future. Given this information, what do you recommend for the total value of the oil and gas division? What about the retail grocery division?
4. (4 marks) Rapid Corporation is offering $71 per share. Given the information in part (b), would you recommend the shareholders of Tamed Inc. to accept the offer or decline it? Explain!

Hint: You need to use multiples in your analysis and valuation of Tamed Inc.!

Statement of Comp. Income (Oil and Gas Division)
Sales	2,000
Cost of goods sold	700
Depreciation	300
EBIT	1,000
Interest paid	200
Taxable income	800
Taxes (40%)	320
Net Income	480

Statement of Comp. Income (Retail Grocery Division)
Sales	15,500
Cost of goods sold	14,400
Depreciation	500
EBIT	600
Interest paid	100
Taxable income	500
Taxes (40%)	200
Net Income	300

Statement of Comp. Income (Consolidated Statement)
Sales	17,500
Cost of goods sold	15100
Depreciation	800
EBIT	1,600
Interest paid	300
Taxable income	1,300
Taxes (40%)	520
Net Income	780

Companies
Enbridge Inc.	Air Canada Inc.
Suncor Energy Inc.	Canadian Natural Resources
Imperial Oil Ltd	Pizza Pizza Royalty Corp
Loblaw Companies Ltd	Canadian Tire Corp.
Metro Inc.	TC Energy Corp.