PROBLEM 8-12 Solution Legend Value given in problem FormulaCalculation/Analysis required Qualitative analysis or Short answer required Goal Seek or Solver cell Crystal Ball Input EXHIBIT 1 Earthlink Yahoo eBay Microsoft Financial Information 2003 Shares Outstanding 2003 Fiscal Close Stock Price Market Capitalization Short Term Debt Long Term Debt Cash & Equivalents Short Term Investments EBITDA Net Income 10.800,000,000 25.64 S 1,593,990,000 S 29,521,758,060 41,790,975,590$276,912,000,000 159,399,000 S 655,602,000$ 646,819,000$ 64.61 $ 10.00 $ 4503 $ al Ball Output 2,800,000 $ -S750,000,000 $ 124,500,000$ 349,740,000 S 713,539,000 $1,381,513,000 $ 89,088,000 S 595,975,000$340,576,000$ 218,100,000 S 455,300,000$818,200,000$ (62,200,000) S 237,900,000441,800,000 $ 900,000S 6,438,000,000 42,610,000,000 14,656,000,000 9,93,000,000 alculatoo Solution Average Price to Earnings Enterprise Value EBITDA multiple Part a. EBITDA Cash Debt Net income Shares 800,000,000 430,000,000 10,000,000 400,000,000 271,219,643 Earthlink Microsoft Average Imputed IPO price per share from PE ratio Impute EV from EBITDA multiples Part b Part c. PROBLEM 8-12 Solution Legend Value given in problem FormulaCalculation/Analysis required Qualitative analysis or Short answer required Goal Seek or Solver cell Crystal Ball Input EXHIBIT 1 Earthlink Yahoo eBay Microsoft Financial Information 2003 Shares Outstanding 2003 Fiscal Close Stock Price Market Capitalization Short Term Debt Long Term Debt Cash & Equivalents Short Term Investments EBITDA Net Income 10.800,000,000 25.64 S 1,593,990,000 S 29,521,758,060 41,790,975,590$276,912,000,000 159,399,000 S 655,602,000$ 646,819,000$ 64.61 $ 10.00 $ 4503 $ al Ball Output 2,800,000 $ -S750,000,000 $ 124,500,000$ 349,740,000 S 713,539,000 $1,381,513,000 $ 89,088,000 S 595,975,000$340,576,000$ 218,100,000 S 455,300,000$818,200,000$ (62,200,000) S 237,900,000441,800,000 $ 900,000S 6,438,000,000 42,610,000,000 14,656,000,000 9,93,000,000 alculatoo Solution Average Price to Earnings Enterprise Value EBITDA multiple Part a. EBITDA Cash Debt Net income Shares 800,000,000 430,000,000 10,000,000 400,000,000 271,219,643 Earthlink Microsoft Average Imputed IPO price per share from PE ratio Impute EV from EBITDA multiples Part b Part c