Question: ANSWER ALL THREE QUESTION PLZ A. Red Top Limited (RTL) is a highly successful manufacturing company. The company is preparing its 5-year strategy and wants

ANSWER ALL THREE QUESTION PLZ

A. Red Top Limited (RTL) is a highly successful manufacturing company. The company is preparing its 5-year strategy and wants to analyze its implied enterprise value using the comparable companies, EBITDA metric. The comparison uses LTM for 2017 and estimates for 2018 and 2019. Given the information in the table below, what are the implied value ranges for (RTL )? ( 6 Marks)

EBITDA

Metric

Multiple Range

LTM

$ 800.00

8.00x - 8.50x;

2018E

$850.00

7.25x - 7.75x;

2019E

$890.8

6.75x - 6.95x

B. OSO Inc requested your assistance to calculate the equity value and enterprise value from the data provided in the table below. (8 Marks)

S in millions, except per share data; shares in millions)

Description

Amount

Current Share Price

$ 30

Fully Diluted Shares Outstanding

100

Total Debt

400

Preferred Stock

50

Noncontrolling Interest

20

Cash and Cash Equivalents

60

c. ACT Ltd is assessing the equity value if it acquires TRY Ltd. TRY shareholders will receive one share of ACT Ltd common stock for every five shares of TRY common stock. Prior to the transaction, ACT's share price was $40 per share. TRY has 50 million shares outstanding. Based on these details calculate the equity value in this fixed exchange ratio structure .

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