$2.$ You are comparing two firms and have compiled the following information, obtained from

their consolidated financial statements $($in millions$)$:

Lugano Stultz

Market value of equity $900013000$

Book value of equity $40006000$

Market value of debt $50005000$

Book value of debt $45004500$

Cash $15002000$

Market value of minority holdings $15001000$

Book value of minority holdings $500500$

Market value of minority interests $10003000$

Book value of minority interests $4001000$

Effective Tax rate $40\%20\%$

Net Income $6001200$

Interest expenses $500500$

Depreciation & Amortization $5001000$

You can assume that the firms had no interest or other non$-$operating income. They are both in

stable growth and have the same cost of capital.

On a consolidated EV$/$EBITDA basis, and incorporating whatever fundamentals you can, which

of these firms is cheaper $($worth investing$)?$You are comparing two firms and have compiled the following information, obtained from

their consolidated financial statements $($in millions$)$:

You can assume that the firms had no interest or other non$-$operating income. They are both in

stable growth and have the same cost of capital.

On a consolidated EV$/$EBITDA basis, and incorporating whatever fundamentals you can, which

of these firms is cheaper $($worth investing$)?$