Problem 3: Valuing Google {to} Google, Inc., of Mountain View, California, operates the most popular and powerful search engine on the Web, The company went public using an unconventional Dutch auction method on August 19, 2004.1he resulting IPD was the largest Internet [PD ever, raising $1.6? billion and leaving the rm with 2?],2l9,643 shares of eommon stock You are trying to value the shares in an effort to price the 1H). {Mentally transport yourself back to AugustD4.) While Google eommands a wide lead over its competitors in the search engine market, it is wiuressing an increased presstne from wellfunded rival entities. Yahoo! Inc, with a market cap of approximately $38.43 billion, is generally regarded as following a business model veryr similar to Google's. 1. Using both PE ratio and Enterprise 'v'alue to EBIDTA ratio, at what price should the stock he offered? Use the data in the following table for the set of comparable companies in your analysis. Assume Google's forecaster! EBIDTA is approximately $80!} million, cash and equivalents are $430 million, and interest bearing deht [total shortterm and longterm} equals sis million. men, Google's net income is expected to be $213] million