Use the information below to compute the Firm (Enterprise) Value of Edward Limited using (a) an income statement multiple and (b) a balance sheet multiple.

The valuation date is 30 June 2020, and relevant information from Edward Limiteds financial statements for the year ended 30 June 2020 and as at that date follows:

• NOPAT $300,000
• Net operating assets (NOA) $2,600,000

There are two companies, CompCo Henry and CompCo James, which are similar to Edward Limited in that they are in the same industry, have comparable cost structures, profitability, and growth prospects.

Relevant information for CompCo Henry and CompCo James for their year ended 30 June 2020 and as at that date follows:

CompCo Henry CompCo James

NOPAT $125,000 $125,000

Net operating assets (NOA) $1,136,363 $1,057,692

Net nonoperating obligations (NNO) $250,000 $375,000

Book value of equity (EQ) $886,363 $682,692

Share price $1.00 $1.25

Number of shares on issue 1,000,000 800,000