1. Now Bob is wondering the possible range of sales for the firm 68% and 95% of the time. The last 5 years avg sales were 10 million with a standard deviation of 5 million. What is his answer:

1. 5 to 15, 0 to 30
2. 0 to 10, 0 to 20
3. 10 to 10, 20 to 20
4. None of the above

1. Marys current company has debt of 20 and EBITDA of 5. The firm under purchase consideration has debt of 4 and next year FCF (aka EBITDA) of 2. If Marys firm has a WACC of 10% and cost of equity of 12% ,and the new firms growth rate is 3% what is the price of purchase and Marys firms Debt to EBITDA ratio after purchase?

1. 22 and 3.4
2. 36 and 3.4
3. 29 and 3.4
4. 29 and 4