The founder and managing director of Adam Sports is currently approached by AgogoSports' CEO for a possibility of takeoverof Adam Sports by Agogo. Adam Sports has been in the industry for more than 30 years. As the company becomes more mature and established its reputation with high quality products, it was able to generate a stable streams of earnings and cash flow in the past few years. He is asking you to gather information for valuing the business. The company'spartial Balance Sheet as at 31 December 2018 is as follows:

Liabilities and Equity Accounts payable $6,000,000 Accruals $5,000,000 Current liabilities $1 1,000,000 Long term bond (10% coupon, maturity date 31/12/2025) $15,000,000 Total liabilities $26,000,000 Common Stock ($1 par) $15,000,000 Retained Earnings $34,000,000 Total shareholders' equity $49,000,000 Total liabilities and shareholders' equity MM