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You are supposed to calculate the equity value of a private firm. Here is the financial statements of the private firm ( in thousands) :

You are supposed to calculate the equity value of a private firm. Here is the financial statements of the private firm ( in thousands) :

2016

Current Assets

Cash and equivalents

$20,000

Receivables

40,000

Inventories

29,000

Other current assets

23,000

Total current assets

$112,000

Noncurrent Assets

Property, plant, and equipment

$145,000

Less: Accumulated depreciation

43,000

Net property, plant, and equipment

102,000

Investments

70,000

Other noncurrent assets

36,000

Total noncurrent assets

208,000

Total assets

$320,000

Current Liabilities

Accounts payable

$41,000

Short-term debt

12,000

Other current liabilities

17,000

Total current liabilities

$70,000

Noncurrent Liabilities

Long-term debt

100,000

Total noncurrent liabilities

100,000

Total liabilities

170,000

Shoreholders' Equity

Common equity

40,000

Retained earnings

110,000

Total equity

150,000

Total iabilities and equity

$320,000

2016

Sales

$250,000

Cost of goods sold

125,000

Gross operating profit

125,000

Selling, general, and administrative expenses

50,000

EBITDA

75,000

Depreciation and amorization

10,500

EBIT

64,500

Interest expense

11,000

Pretax income

53,500

Income taxes

16,050

Net income

$37,450

Shares outstanding

13,000

EPS

2.88

You also find the following four competitors and their enterprise value and EBITD:

($ millions)

APU

PRAX

AIT

ARG

Enterprise Value

31,140

47,400

2,010

10,454

EBITDA

2,481

3,703

197

943

A) What is the enterprise value of the private firm based on the EBITDA multiple valuation?

B) What is the equity value? What is the equity value per share?

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