2. Find the equity value of Spyder using trading multiples. a) Use Exhibit 11 on comparable companies. Note that "LTM Interest-Bearing Debt" stands for net debt (i.e., debt - excess cash), so to find enterprise value, you can simply use the sum of columns D and E in Exhibit 11. b) Find the average EV/Sales of comparable companies. c) Find the average EV/EBITDA of comparable companies. d) Use Exhibit 5 and the FY2004 Sales and EBITDA to find the enterprise value of Spyder in 2004 using the two average multiples you found in b) and c). You will get two different answers, one for each multiple. e) Use Exhibit 6 and the FY2004 balance sheet numbers to find the equity value of Spyder (Spyder's debt in 2004 is given by the balance sheet item "Other Liabilities"). You will get two different answers, one for each multiple.

A B C D E F G H Exhibit 11 Selected Financial Data about Comparable Companies (in $ or Euro millions, as of 03/31/2004) N Five-Year Market Value LTM Interest- Average Debt-to- 3 Company Name Industry Beta of Equity Bearing Debt Total Value LTM Sales LTM EBITDA Adidas-Salomon AG Sports Apparel, Footwear, & Equipment 0.81 4.302 1,459 0.39 6,221 586 6 Columbia Sportswear Co. Sports Apparel 1.48 2,239 20 0.06 990 220 7 K2 Inc. Sports Equipment 1.36 559 209 0.41 839 63 8 Nike Inc. Sports Apparel & Footwear 0.70 20,558 866 0.08 11,751 1,736 9 Quiksilver Inc. Sports Apparel 1.01 1,217 138 0.17 1,039 130 10 Skis Rossignol SA9 Sports Equipment & Apparel 0.55 174 118 0.44 479 25 11 VF Corp Apparel, incl. Sports Apparel 0.59 5,113 994 0.20 5,390 725 12 13 14 = Figures are in U.S. dollars for all companies except for Adidas-Salomon AG and Skis Rossignol SA, which are in Euros 15 Estimated by 60-month regression of stock returns on S&P500 returns 16