Question: For the year ending Dec. 31, 2022, Arcturus Corp. had EBITDA = $9 million, and Net Income = $5 million. At the time, Arcturus had

For the year ending Dec. 31, 2022, Arcturus Corp. had EBITDA = $9 million, and Net Income = $5 million. At the time, Arcturus had debt of $12 million, excess cash of $8 million, and 3.0 million shares outstanding.

A. Suppose that Spica Inc. (a comparable firm that is publicly traded) has a P/E ratio of 20. What total equity value and share price would you then estimate for Arcturus.

B. Suppose that Spica Inc. (the comparable firm) has an Enterprise Value/EBITDA multiple of 11. What enterprise value and share price would you then estimate for Arcturus?

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