1. Assess DPC’s fit within DuPont. What are its prospects going forward as a division within DuPont versus its potential value to an outside party? (5 pt)2. How attractive is DPC as an acquisition target from a strategic buyer’s or PE firm’s perspective? What are the potential risks to such a deal (5 pts)3. Working from case Exhibit 9, relative to the stand-alone value, estimate the dollar increase in DPC’s value if a PE fund could obtain (10 pts):a) 5% revenue growth per year (versus 4%) in each of the next five years and improve the operating margin to 12% (versus 10%).b) Assume part a and that the division could be sold at 7.5 x EBITDA in five years.c) Assume part a and part b and that debt financing equal to 6 x EBITDAyear 2012 can be obtained. Assume that all cash available to pay debt each year (i.e., residual cash flow) is used to pay down the LBO debt and that, after five years, the firm will revert to an all-equity firm.4. If the PE sponsor has a target return of 20% on its investment, what is the maximum enterprise value it can offer for DPC under parts b) and c) above? (5 pts)