Number of shares for company T = 1.78 million

Edit: Please check again, the question is complete.

Problem 4: (20 marks) [You may use excel to verify your answers, but the answers should be handwritten with all the steps) Mn (Million) Comparables: Company A Company B Company Price per share $ 9.75 Price per share $ 21.00 Price per share $ 19.00 Market value of preferred share $ 10.00 m No preferred share Market value of preferred share S 5.45mn It of common shares 1.50 mn of common shares 0.18 mn #of common shares 3.50 m Book value of debt $ 4.35 mn Book value of debt $5.45 mn Book value of debt $ 5.78mn Cash and cash EQ $ 1.30 mn Cash and cash Eq $ 0.40 mn Cash and cash Eq S 1.10 m EBIT D&A Interest expenses Tax rate $ 2.22 mn EBITDA $ 0.35 mn D&A $ 0.21 mn Interest expenses 39% Tax rate $ 0.85 mn EBIT $ 0.45 mn D&A $ 0.35 mn Interest expenses 41% Tax rate $ 2.45mn $ 0.56 mn $ 0.33 mm I 38% Target company Forward EPS $ 0.45 EBITDA $ 3.42 mn Market value of preferred share $ 098 m # of common shares 1.78 mm Book value of debt $ 4.32 mn Cash and cash Eq $ 0.75mn Tax rate 42% You are asked to value company using the Multiple comparable) approach. You are given company, A, 8, and Cas comparables Calculate the price per share of Tusing EV/EBITDA multiple. Use simple average of comparables and use all the companies (do not drop outliers). Calculate the price per share of T using P/E multiple. Use simple average of comparables and use all the companies (do not drop outliers) a) 10 marks b) 10 marks