Question 3 5 points Most UAE expats should be able to find a supermarket that stocks much the same as what they would find back home, although the range of items might be more limited, especially for more obscure items. Some chains are more popular with certain nationalities, usually because of the range of products stocked, which itself might depend on the prevailing nationality or nationalities living in the suburb of Dubai in which the supermarket is located. The recent survey shows that the two currently most popular supermarkets in the UAE are Waitrose and Choitrams. The accounting figures and market values (all in millions of USD) for Waitrose and Choitrams are presented in the table below. These two supermarket chains are considered to be comparables for Spinneys, the major competitor of Waitrose and Choitrams. a. Calculate the price-to-book ratio for both Waitrose and Choitrams, each. (1 point)

b. Calculate the price-to-earnings ratio for both Waitrose and Choitrams, each. (1 point)

c. Calculate the price-to-sales ratio for both Waitrose and Choitrams, each. (1 point) d. Apply the average of the multiples for Waitrose and Choitrams in part (a) to (c) in order to value the Spinneys 100 million outstanding shares. Show all intermediate steps and calculations. (1.5 points)

e. Issue a buy or sell recommendation and provide a justification for your decision, if the Spinneys shares currently trade at $10 per share in the stock market. (0.5 points