Alignment A 1 Madison Makeup reported the following on its most recent financial statements in S millions). Fill in the highlighted cell. D E F G 2 3 Miscellaneous financial information Amount 4 Cash $350,000 5 Current portion of long-term debt $300,000 6 EBIT $750,000 7 EBITDA $900,000 8 Goodwill $400,000 9 Long-term debt $1,700,000 10 Short-term debt $700,000 11 Total assets $3,400,000 12 Total liabilities $1,000,000 13 Note: number of shares 500,000 14 Note: effective tax rate 18.50% 15 Note: average peer EV/EBITDA 11.79 16 Note: median peer EV/EBITDA 13.05 17 Note: average peer EV/EBIT 18.36 18 Note: median peer EV/EBIT 17.14 19 Note: average peer P/B 3.14 20 Note: median peer P/B 2.87 21 $16.52 $0.47 23 24 25 What is the share price of Madison Makeup if the relevant 26 peer multiple is the average EV/EBITDA for its peers? What is the share price of Madison Makeup if the relevant 27 peer multiple is the median P/B for its peers? What is the share price of Madison Makeup if the firm is considered riskier than its peers and the appropriate pricing multiple for the firm is the average P/B for the peer 28 group, adjusted by 0.50 in the relevant direction What is the share price of Madison Makeup if the firm is considered faster growing than its peers and the appropriate pricing multiple for the firm is the median P/B 29 for the peer group, adjusted by 0.26 in the relevant What is the share price of Madison Makeup if the firm is considered better managed than its peers and the appropriate pricing multiple for the firm is the average 30 EV/EBIT for the peer group, adjusted by 1.04 in the relevant 31