Using information below calculate acquisition EV/EBITDA multiple for the company below. Shares outstanding, mn Offer share price Depreciation and amortization Tranche 1 stock options outstanding, mn Tranche 1 strike price for options outstanding Tranche 1 stock options exercisable, mn Tranche 1 strike price for options exercisable Restricted stock units Cash on balance sheet pre deal Debt on balance sheet pre deal Reported operating profit Reported net income 31.25x 12.31x 9.72x 14.21x 173.4 7.8 96 29.72 2.87 11.06 2.67 5.27 111.6 522.4 62.44 41.3 x

Using information below calculate acquisition EV/EBITDA multiple for the company below. Shares outstanding, mn Offer share price Depreciation and amortization Tranche 1 stock options outstanding, mn Tranche 1 strike price for options outstanding Tranche 1 stock options exercisable, mn Tranche 1 strike price for options exercisable Restricted stock units Cash on balance sheet pre deal Debt on balance sheet pre deal Reported operating profit Reported net income 31.25x 12.31x 9.72x 14.21x 173.4 7.8 96 29.72 2.87 11.06 2.67 5.27 111.6 522.4 62.44 41.3 x

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 4.8P

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