Question 3 Consider the following information in Table 3 about two companies, SUNIX and STARIX: Table 3 SUNIX STARIX Enterprise value () 54000 43000 Debt () 17000 12000 Cash () 6000 5000 Minority Interests () 400 700 4000 1250 Financial Investments () Number of shares EPS 2019 () 2500 3000 3.5 6.0 EPS 2020 () 4.0 6.3 where EPS 2019 and EPS 2020 stands for expected earnings per share for the year 2019 and 2020, respectively. For all your answers present results with one decimal (for example, 1.45 is rounded to 1.5). a) What is the total equity value and the equity value per share of each company? Explain your answer. [5 marks] b) The market prices per share of company SUNIX and STARIX are 15 and 14, respectively. What is your investment recommendation based on the fundamental valuation done in Question 3a? Explain your answer. [5 marks] c) Using market prices of each company, what is the multiple Price Earnings for 2019 and 2020 (PE 2019 and PE 2020) for each company? Explain your answer. [5 marks] Question 3 Consider the following information in Table 3 about two companies, SUNIX and STARIX: Table 3 SUNIX STARIX Enterprise value () 54000 43000 Debt () 17000 12000 Cash () 6000 5000 Minority Interests () 400 700 4000 1250 Financial Investments () Number of shares EPS 2019 () 2500 3000 3.5 6.0 EPS 2020 () 4.0 6.3 where EPS 2019 and EPS 2020 stands for expected earnings per share for the year 2019 and 2020, respectively. For all your answers present results with one decimal (for example, 1.45 is rounded to 1.5). a) What is the total equity value and the equity value per share of each company? Explain your answer. [5 marks] b) The market prices per share of company SUNIX and STARIX are 15 and 14, respectively. What is your investment recommendation based on the fundamental valuation done in Question 3a? Explain your answer. [5 marks] c) Using market prices of each company, what is the multiple Price Earnings for 2019 and 2020 (PE 2019 and PE 2020) for each company? Explain your answer. [5 marks]