3. Exhibit 16.12 presents market and profit data for three companies that operate in the same industry. Using the data, compute ratios of enterprise value to EBITDA and enterprise value to EBITA for Companies 1 and 2. Is the net difference between Company 1 and Company 2 the same for both ratios? If not, why might this be?

EXHIBIT 16.12 Multiples Analysis: Market and Profit Data Company 1 Company 2 Company 3 Market data Share pricet, $ 25 16 30 Shares outstandingt, millions 5 8 15 Debt, $ million Short-term debtt 25 15 30 Long-term debtt 50 70 40 Operating profit, $ million EBITDAt+1 25 30 59 EBITAt+1 22 23 51