Hi There,

I'm just working through this problem.

I reverse engineered it using an excel I had for working out the multiples valuation and I believe the answer to be $2,110 million, am I correct?

Is that the best way to work it out or is there a formula I can use?

The most recent financial statements of EGA Foods show EBIT of $242.8 million, depreciation and amortisation of $45.4 million, total short-term and long-term debt of $863.0 million and cash of $87.5 million. What is the approximate value of the equity in EGA Foods if other grocery stores are trading on a historic EV/EBITDA multiple of 10X?

(a)$2,880 million

(b)$3,660 million

(c)$2,110 million

(d)$1,200 million

Thanks