In this workout, we're being asked to calculate the enterprise value for Olaf using the information below It also tells us to assume that they're is no adjustment required for pension plan assets and liabilities Provisions, other assets and other liabilities are all operating So the first thing we need to do is work out the company's equity value And we've got some information to help use here, the current share price and a premium We'll then need to multiply it by the number of diluted shares outstanding and again, we've got some information to start us off The basic shares outstanding for class A and B So let's go down to the start of our answer and I've got my current share price of 251.5 linking up to the cells above And the offer premium as well So to calculate the offer price, I'm going to take the current share price of 251.5 and multiply that by one plus the 35% Getting me 339.5 Next up, we need to work out the number of diluted shares outstanding And I've started by taking the basic shares outstanding for class A and B and then adding them together And I've got them from further up in excel However, the next thing we need to do is look at any dilution We need to look at the options information and the restricted stock units information Let's see what we can find further up the page Here we're looking at the options outstanding and we can see that as of the year, they had 794 Just to point out, those number of options are in thousands The weighted average exercise price is 203.49, so let's use those two bits of information to use the treasury stock method on them So let's put those two pieces of information into the treasury stock method and work out the number of new shares So my options outstanding was 0.794 and the option strike price 203.49 I now need to calculate using the treasury stock method, the dilution from options So I'm going to take the options outstanding, multiply that by (open brackets) the offer price Minus the option strike price, all divided by the offer price again Getting me 0.318 new shares What about restricted stock units? Again, let's scroll up the page And we've got restricted stock units footnote available Here we can see that at the end of the year, there were 1,952 restricted stock units We know that they have a strike price of zero, so we'll need to create exactly 1,95 So my diluted shares outstanding is going to be the sum of three items Firstly, my basic shares outstanding Secondly, the dilution from the options and thirdly, the dilution from restricted stock units Getting me 864.8 From that, we can now calculate the equity purchase price. It's going to be the number of diluted shares time by the offer price Getting us 293,632.4 Now we need to go over the EV equity bridge, so let's go up to our balance sheet And let's see if there are any items in there that we think won't be included in enterprise value And thus need to be included in the bridge Going down to the current assets though, I can see that there are two non operating items Marketable securities and cash and cash equivalents Scrolling down a little further into our liabilities, I notice we've got long term debt and short term debt Everything else there is operating So let's put those four items in to our EV equity bridge We can now calculate the enterprise value, which is going to be the equity purchase price Long-term debt, short term debt all summed together. Minus any non core assets So the marketable securities and cash and cash equivalents Getting us to an enterprise value of 307,712.4