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Please assist ! Brooks Plumbing Products Inc. (BPP) manufactures plumbing fixtures and other home improvement products that are sold in Home Depot and Walmart as

Please assist !
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Brooks Plumbing Products Inc. (BPP) manufactures plumbing fixtures and other home improvement products that are sold in Home Depot and Walmart as well as hardware stores. BPP has a solid reputation for providing value products, good quality, and a good price. The company has been approached by an investment banking firm representing a third company, Garden Specialties Inc. (GSI), that is interested in acquiring BPP. The acquiring firm (GSI) is a retailer of garden supplies; it sees the potential synergies of the combined firm and is willing to pay BPP shareholders $40 cash per share for their stock, which is greater than the current stock price: the stock has traded at about $36 in recent months. Summary financial information about BPP follows BROOKS PLUMBING PRODUCTS INC. Selected Financial Information For the Years Ended December 31 2019 2019 Industry Average $ $ 79,979,778 56,838,465 39.725.416 2018 3,516, 227 87,360,771 59,949,645 Cash Accounts receivable Inventory Long-lived assets Gross book value Het book value Replacement cost Liquidation value Current liabilities Long-term debt Shareholders' equity Capital expenditures 167,338,377 100,650,809 170,647,400 65,794,202 119.105.766 32,057,364 126,091,338 23,560,000 668,134,271 498,957,785 102,727.355 143,838,377 95,947.382 18,25,338 67,395,209 121,061,274 37,951, 382 87,701,369 13.050,336 639.376,465 477,291,001 134, 125,229 36.000 18,826,493 2.510,000 15,224,254 1,310,000 23.50 23,363,554 25,209,554 Cost of sales Operating expense Income tax rate Depreciation expense Dividends Year and stock price Number of outstanding shares Salet multiplier Free cash flow multiplier Earnings sultiplier Cost of capital Accounts receivable turnover Inventory turnover Current ratio Quick ratio Cash flow ratio Free cash flow ratio Gross marcin percentage Return on assets (net book value) Return on equity Earnings per share 13.60 1.se 28.03 $ 2.31 "Operating expense includes depreciation expense. 8.00 13.60 Free Casn TLOW Multipuler Earnings multiplier Cost of capital Accounts receivable turnover Inventory turnover Current ratio Quick ratio Cash flow ratio Free cash flow ratio Gross margin percentage Return on assets (net book value) Return on equity Earnings per share 6.10 8.40 1.80 1. le 1.3 1.1e 32. "Operating expense includes depreciation expense. Required: 1. What is the valuation of BPP (for 2019) using the market value method? 2. What is the valuation of BPP (for 2019) using the book value method? 3. What are the valuations of BPP (for 2019) using the multiples-based methods for sales, earnings, and free cash flow? 4. What is the estimated value for BPP using the discounted free cash flow method, assuming that the 2019 amount of free cash flow continues indefinitely? 5. Which of the methods would you use? 6. Is the GSI offer a good one? (For requirements 1 to 4, round your answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Market value of equity method Book value of equity method Multiples-based method - Sales Multiples-based method - Earnings Multiples-based method - Free cash flow Discounted cash flow method Which of the methods would you use? is the GSI offer a good one? 956,413,975 126,001,338 868,575,202 578,377 563 $ 1,511,832 724 $ 754 102 163 Market value of equity method 6

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