The CFO of TDW Manufacturing is attempting to determine which of the firm's four main competitors is the most undervalued as compared to the others. TDW's industry and business can be characterized as mature. The team that has been assigned the analytical evaluation of these companies has determined that the best valuation method for this effort is the Enterprise Value to EBITDA method. Provide three reasons why they may have reached this determination. (3 points) Using the financial information provided below use Enterprise Value to EBITDA to determine which of TDW's competitors is the most undervalued as compared to the others. (7 points) Sin Millions Revenues Competitor #1 $73 Competitor #2 $95 Competitor #3 $88 Cost of Sales 51 65 64 Operating Expenses 22 Interest Expense Taxes Depreciation Mkt. Value of Common Equity Market Value of Debt Cash Other Current Assets Long term Assets Current Liabilities Long term Liabilmes 18 6 (2) 2 4 53 12 2 15 43 13 15 5 - 1 S 71 14 4 20 49 14 18 16 6 1 = 6 91 5 23 50 13 24 Competitor #4 $106 71 20 7 3 27 132 16 7 7 29 53 16 20