1. What is the Terminal Value based on the average of:

1) The terminal value based on a perpetual growth rate, and;

2) The terminal value based on the EBITDA exit multiple assumption outlined on the "Control Panel" tab

a. $454,756

b. $450,323

c. $599,446

d. $400,206

2. What is the weighted-average cost of capital (WACC) based on Company XYZ's current capitalization and comps values?\

a. 9.50%

b. 8.30%

c. 7.90%

d. 9.00%

3. What is Company XYZ's intrinsic equity value using the WACC as the discount rate and assuming the terminal value is based on the EBITDA exit multiple?

a. $320,048

b. $315,309

c. $328,445

d. $315,198

4. Based on comparable trading metrics, what is the implied enterprise value if the median P/E ratio is used as the basis for valuation?

a. $305,618

b. $295,618

c. $315,618

d. $325,618

5. If an investment using the value implied by the median EV/EBITDA multiple from the comps is made at the transaction date, what is the implied IRR? Assume the terminal value is the average of the values determined using the perpetual growth rate and an EBITDA exit multiple.

a. 9.55%

b. 8.88%

c. 9.51%

d. 9.12%

2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E Income Statement Sales Revenue Cost of Sales Gross Profit $65,328 ($30,278) $35,050 $68,594 ($33,665) $34,930 $72,024 ($37,586) $34.438 $75,625 ($38,676) $36.950 $79,407 ($35,894) $43,513 $83,377 ($33,010) $50,367 $87,546 ($40,118) $47.428 $91,923 ($41,027) $50,896 $96,519 ($41,380) $55,139 $101,345 ($40,413) $60,932 SG&A Expense A Depreciation Expense Interest Expense Income Before Income Taxes Income Taxes Net Income ($9,799) ($4,875) ($1,200) $19,176 ($5,753) $13,423 ($10,289) ($4,899) ($1,140) $18,601 ($5,580) $13,021 ($10,804) ($4.931) ($1,080) $17,623 ($5,287) $12,336 ($11,344) ($4.970) ($1,080) $19,556 ($5,867) $13,689 ($11.911) ($5,015) ($990) $25,597 ($7,679) $17,918 ($12,507) ($5,065) ($810) $31,986 (59,596) $22,390 ($13.132) ($5,119) ($720) $28,457 ($8,537) $19,920 ($13,788) ($5,177) ($720) $31,210 ($9,363) $21,847 ($14,478) ($5,239) $720) $34,702 ($10,411) $24.291 ($15,202) ($5,305) ($660) $39,766 ($11,930) $27,836 Balance Sheet Items PP&E Schedule PP&E, Opening Balance Capital Expenditures Depreciation Expense PP&E, Ending Balance $30,000 $5,000 ($4,875) $30,125 $30,125 $5,075 ($4,899) $30,301 $30,301 $5,151 ($4,931) $30,520 $30,520 $5,228 ($4,970) $30,779 $30,779 $5,307 ($5,015) $31,071 $31,071 $5,386 ($5,065) $31,392 $31,392 $5,467 ($5,119) $31,741 $31,741 $5,549 ($5,177) $32,113 $32,113 $5,632 ($5,239) $32,506 $32,506 $5,717 ($5,305) $32,918 Debt Schedule Total Debt, Opening Balance Issuance (Repayment) Total Debt, Ending Balance Interest Expense $20,000 $0 $20,000 $1,200 $20,000 ($2,000) $18,000 $1,140 $18,000 $0 $18,000 $1,080 $18,000 $0 $18,000 $1,080 $18,000 ($3,000) $15,000 $990 $15,000 ($3,000) $12,000 $810 $12,000 $0 $12,000 $720 $12,000 $0 $12,000 $720 $12,000 $0 $12,000 $720 $12,000 ($2,000) $10,000 $660 Equity Schedule Total Equity, Opening Balance Net Income Dividends Share Issuance (Buy-Back)) Total Equity, Ending Balance $172,697 $21,847 $60,000 $13,423 $0 $ $0 $ $73,423 $73,423 $13,021 $0 $86,444 $12,336 $0 $0 $98,780 $98,780 $13,689 $0 $0 $112,469 $112,469 $17,918 $0 0 $0 $130,387 $130,387 $22,390 $0 $0 $152,777 8188 $152,777 $19,920 $0 $0 $172,697 $194,544 $24,291 $0 $0 $86,444 28 8 $218,835 $27,836 $0 $0 $246,671 B] $0 $218,835 $194,544 Unlevered Beta Comparable Companies Beta Levered Company Beta Company A 1.27 Company B 1.31 Company C 1.15 Company D 1.11 Company E 1.38 Median Debt $550 $500 $450 $600 $450 Equity $1,100 $900 $1,200 $1,000 $1,400 Debt! Equity Tax Rate 35% 30% 29% 33% 30% EV Sales [$] EV/Sales x] Valuation (2020E) EVIEBITDA EV/EBIT [x] [x] PIE [x] ($) Comparable Trading Metrics Market Data Company Name Price Market Cap {$/sh.] [$] Company A $38 $168,041 Company B $81 $123,883 Company C $52 $10,326 Company D $70 $11,618 Company E $21 $964 Average Median $185,122 $143,824 $12,764 $11,004 $968 $46,854 $56,415 $3,997 $2,246 $345 Financial Data (202E) EBITDA EBIT [$] ($) $14,104 $11,127 $12,344 $9,878 $1,319 $1,103 $706 $584 $88 $66 Earnings [$] $7,381 $5,618 $620 $357 $41