Moving on to workout two, we need to use the information from the previous workout and calculate the range of enterprise values that creditors view Snowshoe Inc. to be valued at based on normalized EBITDA. In addition, we also need to identify what the fulcrum security is to work out the senior creditor's view of enterprise value. We need to go find what multiple they think the business is valued at and multiply that with the normalized EBITDA. So going up to the information from the previous workout, we've got a multiple of three times EV to EBITDA, and we're gonna multiply that with the normalized EBITDA of 25, giving us a value of 75. The unsecured creditors are valuing the business at a higher multiple, so their valuation is using a multiple of five times EBITDA and five times the 25 normalized EBITDA gives us an enterprise value of 125.

We've also been asked to identify the fulcrum security. Now, fulcrum security is where the value breaks, or to put it differently, it's the instrument in the capital structure that will not be repaid in full. In this case, that would be the unsecured creditors, and to prove that we are going to do work three.