Question 2 (15 points total) You are in the process of valuing a company called Morgan Stanley Partners (MS) and are using comparable company data as part of your analysis. In 2020, MS had the following financials ($MM): Sales D&A EBIT $1,500.0 50.0 200.0 Debt ko Shares (MM) $1,750.0 7.00% 25.00% 75.0 Note: Assume $250M debt paydown in beginning of 2021 and D&A staying constant. In 2020, MS also recorded, in its reported EBIT, a pretax loss of $15M from the sale of a non-core business. Relevant average trading multiples from the comps are shown below: Multiples of 2020 Sales EBIT EBITDA 2.0x 15.Ox 12.0x Mult. Of 21E EPS 22.6x Trading Mult. A) Using the average 2020 EV/EBIT multiple of the comps, what would be the implied price per share of MS? (5 points) B) What would be the implied 2020E EV/EBITDA multiple implied in a $17.50 stock price per share? (5 points) C) What should the 2021E EBITDA be for the stock price to be trading at $22.50 per share today? (5 points) Question 2 (15 points total) You are in the process of valuing a company called Morgan Stanley Partners (MS) and are using comparable company data as part of your analysis. In 2020, MS had the following financials ($MM): Sales D&A EBIT $1,500.0 50.0 200.0 Debt ko Shares (MM) $1,750.0 7.00% 25.00% 75.0 Note: Assume $250M debt paydown in beginning of 2021 and D&A staying constant. In 2020, MS also recorded, in its reported EBIT, a pretax loss of $15M from the sale of a non-core business. Relevant average trading multiples from the comps are shown below: Multiples of 2020 Sales EBIT EBITDA 2.0x 15.Ox 12.0x Mult. Of 21E EPS 22.6x Trading Mult. A) Using the average 2020 EV/EBIT multiple of the comps, what would be the implied price per share of MS? (5 points) B) What would be the implied 2020E EV/EBITDA multiple implied in a $17.50 stock price per share? (5 points) C) What should the 2021E EBITDA be for the stock price to be trading at $22.50 per share today? (5 points)