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2. ABC Corporation provides the following financial statements for the most recent 2 years. a) Assume that the cash account includes only required cash. Determine

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2. ABC Corporation provides the following financial statements for the most recent 2 years. a) Assume that the cash account includes only required cash. Determine the dollar amount of equity valuation cash flow for 2022. b) Now assume that ABC Corporation's required cash is t at 2% of sales. Any additional cash would be surplus cash. Re-estimate the dollar amount of equity valuation cash flow for 2022. c) If investors in ABC Corporation want to estimate the venture's present value at the end of 2021. Forecasted financial statements reflect the stepping stone year, that is, 2022. Cash flows are expected to grow at a perpetual 6% annual rate beginning in 2023. Assume that all cash is required cash as was done in Part a). What is the ABC venture's present value at the end of 2021 if investors want an annual rate of return of 20% ? d) Assume that 2022 is the first year of a 5-year explicit forecast period. For the following 4 years (2023-26), cash flows (based on the figure in Part a)) are expected to grow at 25\%, 20%,15%, and 10%, respectively. Then cash flows are expected to grow at a perpetual 5% annual rate beginning Year 2027. What is the ABC venture's present value at the end of 2021 if investors want an annual rate of return of 25% ? 2. ABC Corporation provides the following financial statements for the most recent 2 years. a) Assume that the cash account includes only required cash. Determine the dollar amount of equity valuation cash flow for 2022. b) Now assume that ABC Corporation's required cash is t at 2% of sales. Any additional cash would be surplus cash. Re-estimate the dollar amount of equity valuation cash flow for 2022. c) If investors in ABC Corporation want to estimate the venture's present value at the end of 2021. Forecasted financial statements reflect the stepping stone year, that is, 2022. Cash flows are expected to grow at a perpetual 6% annual rate beginning in 2023. Assume that all cash is required cash as was done in Part a). What is the ABC venture's present value at the end of 2021 if investors want an annual rate of return of 20% ? d) Assume that 2022 is the first year of a 5-year explicit forecast period. For the following 4 years (2023-26), cash flows (based on the figure in Part a)) are expected to grow at 25\%, 20%,15%, and 10%, respectively. Then cash flows are expected to grow at a perpetual 5% annual rate beginning Year 2027. What is the ABC venture's present value at the end of 2021 if investors want an annual rate of return of 25%

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