1) reproduce this example using MS Excel, 2) define "terminal value," 3) solve for the firm's value as a whole, and 4) solve for the firm's stock value on a per share basis.

TABLE 9.1 Discounted Cash Flow Valuation of Hasbro Inc. on December 31, 2016* ($ millions except per share) These are our projections; not from annual reports. Year 2017 2018 2019 2020 2021 2022 $5,769 $6,184 923 989 $5,381 861 201 660 172 $7,107 1,137 265 215 231 $6,630 1,061 247 814 212 708 Sales EBIT Tax at 23.3% Earnings after tax + Depreciation - Capital expenditures - Increase in working capital Free cash flow 759 872 185 198 227 172 185 198 212 227 115 108 $553 124 $ 635 133 $ 681 142 $ 730 $ 593 $748 $2,571 Terminal value in 2021 $15,589 21,321 5,074 15,000 PV at 7.3% of FCFs '17-'21 Terminal value estimates: Perpetual growth at 2.5% [FCF22/(Kw -9)] Warranted MV firm/Sales in '21 = 3.00 times Projected book value of debt & equity in '21 Best guess terminal value PV of terminal value Estimated value of firm Value of debt Value of equity Shares outstanding Estimated value per share $10,546 $13,117 1,721 $ 11,396 124.5 million $ 91.54 TABLE 9.1 Discounted Cash Flow Valuation of Hasbro Inc. on December 31, 2016* ($ millions except per share) These are our projections; not from annual reports. Year 2017 2018 2019 2020 2021 2022 $5,769 $6,184 923 989 $5,381 861 201 660 172 $7,107 1,137 265 215 231 $6,630 1,061 247 814 212 708 Sales EBIT Tax at 23.3% Earnings after tax + Depreciation - Capital expenditures - Increase in working capital Free cash flow 759 872 185 198 227 172 185 198 212 227 115 108 $553 124 $ 635 133 $ 681 142 $ 730 $ 593 $748 $2,571 Terminal value in 2021 $15,589 21,321 5,074 15,000 PV at 7.3% of FCFs '17-'21 Terminal value estimates: Perpetual growth at 2.5% [FCF22/(Kw -9)] Warranted MV firm/Sales in '21 = 3.00 times Projected book value of debt & equity in '21 Best guess terminal value PV of terminal value Estimated value of firm Value of debt Value of equity Shares outstanding Estimated value per share $10,546 $13,117 1,721 $ 11,396 124.5 million $ 91.54