Question: Create industry EBITDA and EBIT multiples. Then find the expected value of BMP using these multiples, where BMP has: net income of $24,488,481, tax rate
Create industry EBITDA and EBIT multiples. Then find the expected value of BMP using these multiples, where BMP has: net income of $24,488,481, tax rate of 24%, interest on debt of $1,510,000, cost of debt of 7.27%, depreciation and amortization of $16,440,000, 4,622,000 shares outstanding, current stock price of $77.96 and getting a 31% premium. Using allinformation, (i) evaluate BMP versus its industry peers and (ii) assess whether this is a good deal and explain why or why not
RAE
Net Income 15,075,000
Taxes 7,129,478
EBT 22,204,478
Interest 774,888
Depreciation/Amortization 7,662,500
EBITDA 30,641,866
Equity Acquisition Price 288,040,000
Interest Bearing Debt 9,960,000
LOI
20,300,000
8,700,000
29,000,000
3,641,472
7,840,000
40,481,472
312,000,000
50,320,000
CNT
14,088,785
5,478,972
19,567,757
573,991
3,831,250
23,972,998
221,569,231
6,252,626
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Solution To create industry EBITDA and EBIT multiples we can use the data provided for RAE LOI and CNT RAE EBITDA 30641866 EBIT 22204478 LOI EBITDA 40... View full answer
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