2. Suppose Company A has learned that Company B (a firm in a different industry but in a business that is strategically attractive to Company A) has retained an investment bank to auction the company and all of its assets. In considering how much to bid for Company B, Company A starts with the cash-flow forecast of the stand-alone business drawn up by Company B's investment bankers shown in the following Table. Assume no capital expenditure, depreciation, or net working capital is incurred. What is the enterprise value of Company B? Revenue in Year 0 S9 million WACC 11% Revenue growth over the forecast 6% Steady state growth of OCF 5% period of Year 1 to Year 3 from Year 4 Cost of goods sold/Revenue 55% Tax rate 21% Selling, general and administrative expenses/Revenue 20% 2. Suppose Company A has learned that Company B (a firm in a different industry but in a business that is strategically attractive to Company A) has retained an investment bank to auction the company and all of its assets. In considering how much to bid for Company B, Company A starts with the cash-flow forecast of the stand-alone business drawn up by Company B's investment bankers shown in the following Table. Assume no capital expenditure, depreciation, or net working capital is incurred. What is the enterprise value of Company B? Revenue in Year 0 S9 million WACC 11% Revenue growth over the forecast 6% Steady state growth of OCF 5% period of Year 1 to Year 3 from Year 4 Cost of goods sold/Revenue 55% Tax rate 21% Selling, general and administrative expenses/Revenue 20%