Johari Ali, a graduate from Faculty of Management, Multimedia University who is currently working as a security analyst with SmartInvest Bank, a renowned investment bank in Kuala Lumpur. Johari is researching the relative valuation of two companies in the well-being industry, High Spirit Berhad (HS) and Relax International Berhad (RI). Below is relevant information on these two companies in the following table that are gathered by him. EBITDA Comparisons (in RM Millions except Per-Share and Share-Count Data) High Spirit (HS) Relax International Company (RI) (RM) 90 2 million 100 Price per share Shares outstanding Market value of debt Book value of debt Cash and investments Net income Net income from continuing operations Interest expense Depreciation and amortization Taxes (RM) 135 5 million 50 52 5 49.5 49.5 112 2 12 8 3 4 3 2 Continued... I 2/4 LMM& ZS SECURITY ANALYSIS TO MARCH 2021 Using the information in the table, compute the following: a) Price to EBITDA (P/EBITDA) for HS and RI (9 marks) b) Enterprise value to EBITDA (EV/EBITDA) for HS and RI (9 marks) c) Which company should Johari recommend as relatively undervalued? Explain your decision (7 marks)