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31. Suppose that you want to value Rivera Enterprises using a multiples approach. You have the following information on Rivera Enterprises and Diamond General. Rivera

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31. Suppose that you want to value Rivera Enterprises using a multiples approach. You have the following information on Rivera Enterprises and Diamond General. Rivera and Diamond are in the same industry, are roughly comparable in size, and make similar operating decisions. Using the appropriate multiple, use Diamond General to compute an estimated intrinsic value per share for Rivera Enterprises. (8 points) Variable Rivera Enterprises Diamond General EBITDA (in 5 millions) $30.275 m $28.95 m Net Income (in $ millions) $10.83 m $12.28 m Price per share $13.69 $18.36 # of shares (in millions) 20 m 30 m $612.0 m Total firm value in $ millions, includes value of both debt and $456.333 m equity) Leverage % 0.4 debt financed 0.1 debt financed

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