Exhibit 1412company 1company 2company 3market datashare, Ask an Expert

Finance

Exhibit 14.12	Company 1	Company 2	Company 3
Market Data
Share Price	25	16	30
Shares Outstanding	5	8	15
Short-term debt	25	15	30
long-term debt	50	70	40
Operating Profit
EBITDA	25	30	59
EBITA	22	23	51

Exhibit 14.12 presents market and profit data for three companies. Using this data, compute enterprise-value-to-EBITDA and enterprise-value-to-EBITA for Companies 1 and 2. Is the net difference between Company 1 and Company 2 the same for both ratios? If not, why might this be? If Company 3 has nonoperating assets value at $50 million, what are the company's appropriate enterprise-to-EBITDA and enterprise-value-to-EBITA multiples?

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