1. On April 1^st 2014, AqcuirerCo acquired TargetCos 100% shares. The M&A deal that took place between TargetCo and AcquirerCo with a Fixed Exchange Ratio Structure based on basic shares outstanding. According to the terms of the agreement, AcquirerCo delivered its 150 mil shares to TargetCo in exchange of TargetCos 100% basic shares. Assumptions are as shown below ($ in million, except per share data; shares in millions).

   Offer Price Per Share	$25
   Acquirer Share Price	$75
   Acquirer Shares Exchanged	100
   TargetCo's Debt	$900
   TargetCo's Preferred Stock	$150
   TargetCo's Minority Interest	$350
   TargetCo's Cash	$200
   TargetCo's Sales (2014:Q1 Reported Financial Statement)	$1500
   TargetCo's Sales (2013:Q4 Reported Financial Statement)	$3750
   TargetCo's Sales (2013:Q3 Reported Financial Statement)	$3000
   TargetCo's Sales (2013:Q2 Reported Financial Statement)	$2000
   TargetCo's Sales (2013:Q1 Reported Financial Statement)	$1250

   Tranches	Number of Shares (mil)	Exercise Price
   #1	100	$26
   #2	150	$28
   #3	250	$32

   What is the EV/LTM Sales multiple for TargetCo? (10 Points).

   	A.	3.11
   	B.	2.76
   	C.	2.25
   	D.	4.25