Trading comps - Please Use Gap's 2016 10-K to answer the following questions, and choose an answer choice from the options for each questions.

Question 14 of 20

What is the incremental dilution from the conversion of options using the Treasury stock method?

Assume a current stock price of $40.05 and perform the Treasury method calculation on each tier of Options. Hint: you can search Exercisable to more quickly find the relevant information.

• 55,829
• 317,726
• 339,410
• 1,469,830
• 1,852,420

Question 15 of 20

What is Adjusted EBITDA for Fiscal Year 2016? Hint: Remember to add back all D&A, Share-based compensation expenses, and Impairment charges.

• 1,798
• 1,905
• 1,909
• 1,976
• 2,038

Question 16 of 20

You are comparing Gap to a competitor which has a fiscal year ending 12/31/2016. As you calculate an EV / LTM EBIT multiple for all the companies in the industry, what is the value of the denominator that you would use for Gap as you calendarize Gaps fiscal year to match its competitor?

Hint: Note GAPs 2016 fiscal year ended on 1/28/2017.

• 1,191
• 1,216
• 1,274
• 1,499
• 1524

Question 9 of 20

This question does not require 10-K data.

Johnson Pharmaceutics and Pincer Scientific are two companies whose operations are identical in every way. However, Johnson Pharmaceuticals carries far more debt than Pincer does (though assume the weighted average costs of capital for both companies are identical). Assuming the market is valuing both companies correctly, which of the following statements is INCORRECT:

• P/E is a preferable multiple to EV/EBIT for comparing these two companies.
• Both companies will have an identical EV/EBITDA multiple.
• Johnson will likely have a different PE multiple than Pincer.
• Both companies will have an identical enterprise value.
• Both companies will have identical returns on invested capital.