A large company, Alpha Corp, is evaluating the potential acquisition of Beta Ltd$,$ a competitor in the industry. However, there is uncertainty about the appropriate valuation method to use. Alpha Corp wants to compare different valuation approaches, including Discounted Cash Flow $($DCF$),$ Price$-$toEarnings $($P$/$E$),$ Enterprise Value $($EV$)$ multiples, and recent transaction multiples, to determine a fair offer price for Beta Ltd$.$ Disregard synergy and consider an acquisition premium of $10$ percent. Financial Data of Beta Ltd $($ in millions$)$ Year Free Cash Flow $($FCF$)$ Revenue EBITDA Net Income Year $150500120100$ Year $255550132110$ Year $360605145121$ Year $466665160133$ Year $573730176146$ Stable growth rate after Year $5$: $4\%$ per year $$ WACC $($during Years $1-5)$: $10\%$ WACC $($beyond Year $5)$: $9\%$ Net Debt $($Debt $-$ Cash & Equivalents$)$: $200$ million $$ Total Shares Outstanding: $10$ million shares $$ Earnings per Share $($EPS$)($most recent year$)$: $10$ Industry Multiples: $$ P$/$E Ratio: $15$x $$ EV$/$EBITDA: $12$x $$ EV$/$Sales: $2\mathrm{.}5$x $$ Recent M&A Transactions in the Industry: $$ Company A was acquired at $14$x EV$/$EBITDA$.$ Company B was acquired at $3$x EV$/$Sales$.$ Questions a$)$ DCF Valuation i$.$ Compute Beta Ltd$\text{'}$s Enterprise Value $($EV$)$ using the Discounted Cash Flow $($DCF$)$ method. ii$.$ Derive the Equity Value and Price per Share. b$)$ Relative Valuation Methods i$.$ P$/$E Ratio Valuation: Compute Equity Value using the P$/$E ratio approach. ii$.$ EV$/$EBITDA Multiple: Use industry and transaction EV$/$EBITDA multiples to determine Beta Ltd$$s Enterprise Value. iii. EV$/$Sales Multiple: Compute Enterprise Value using both industry and recent transaction multiples. c$)$ Comparison & Interpretation i$.$ Compare results from different methods. ii$.$ Discuss which method should be prioritized for the M&A decision