Question: Please give the specific process Question 4 5 pts JVG Inc., is interested in acquiring Hats 'R' Us, Inc. JVG's CFO has examined similar acquisitions

Please give the specific process

Question 4 5 pts JVG Inc., is interested in acquiring Hats 'R' Us, Inc. JVG's CFO has examined similar acquisitions that have occurred in the industry and has found that in the recent past acquirers have, on average, offered an enterprise value that is 5x target's forward EBITDA. If Hats 'R' Us' current EBITDA is $2.50m and it has $3.125m in debt, how much should JVG offer (per share) for Hats 'R' Us'? Assume that Hats 'R' Us' EBITDA is expected to grow at 5% indefinitely, and that it has 1 million acquisition shares. $5/share O $10/share $15/share $20/share $25/share

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