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1. NewCo has 5,100,000 shares outstanding. If its stock is trading at $21.15, what is its market capitalization? ($) a. 2. Calculate NewCo's enterprise value

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1. NewCo has 5,100,000 shares outstanding. If its stock is trading at $21.15, what is its market capitalization? ($) a. 2. Calculate NewCo's enterprise value at 12/31/18 per the Blackboard document, EV Defined. ($) 3. Calculate New Ce's overall asset efficiency as we did in class. ($) 4. Assess Newco's working capital efficiency by calculating its: a. Average accounts receivables collection period for 2018 (Days), and b. Inventory turnover for 2018. (x) 5. If NewCo's CofGS is 20% fixed, other expense is 90% fixed, and its depreciation and amortization, interest and lease expenses are 100% fixed, calculate its operating leverage, where Operating Leverage = Fixed Costs = Total Costs. (%) NewCe Balance Sheet at 12/31/18 ($ in Millions) Assets Cash Receivables (net) Inventory PP & E (net) Goodwill Total assets 179 Liabilities & Equity Accounts payable Short term debt Long term debt Preferred stock Common Equity Total Liabilities + Equity 179 NewCo Income Statement for 2018 ($ in Millions) 203 129 74 Sales (net) Cofos Gross profit Other expense Depr&Amort Lease expense EBIT Interest expense PBT Tax @ 25% PAT

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