4. The price discussed by the two CEOs is $28M. You must value PAN Airways using free cash flows to see if this price is fair or not. D E F G H Actual 2020 2024 Notes Income Statement a '000 5) Operating Revenue growth rate Total Operating Revenues 2021 4.2% 8,564 Projected 2022 2023 4,0% 4.0% 8,907 9.263 2025 3.4% 9,942 8,219 9,615 Wages, benefits, payroll support, incenti Aircraft fuel, incl. hedging gains/losses Aircraft maintenance/rent Landing fees and other rentals Depreciation/amortization All other expenses Total Operating Expenses 2.211 1.790 565 437 374 1.300 6,677 2,277 1.844 582 458 385 1.365 6,911 2,346 1,899 599 480 397 2,416 1.956 617 503 409 1.505 7,406 2,488 2,015 636 527 421 1580 7,667 2,563 2075 655 552 434 1.659 7,938 Increase at a yearly rate of Increase at a yearly rate of Increased a yearly rate of Increase a yourly rate of Increase of a yourly rate of Increase at a yearly rate of 3.0% 3.0% 3.0% 4.8% 3.0% 5.0% 7,154 Increase at a yourly rate of 5.04 Operating Income Total non-operating income (expense) Income before taxes Income tax expense/(benefit) Net Income 1.253 (524) 1.229 258 971 1,857 (550) 1,307 274 1,033 1,948 (577) 1,370 288 1,083 2,004 (606) 1,397 293 1,104 1,542 1,653 (475) (499) 1.067 1.154 224 242 843 912 Balance Sheet 1,934 2,015 1,249 1,301 672 192 200 4,020 4.189 2,811 2,929 6,831 7,118 Cash and investments Accounts receivable Inventory and supplies, net Other Current Assets Other Total Assets 2,096 1,354 699 208 Increase at Operating Revenue growth rate 645 2,180 1,408 727 216 4,531 3,168 7,699 2,262 1,461 755 225 4.703 3,288 7,991 2,339 1.511 780 232 4,863 3,400 8,263 4,356 3,046 7.403 Increase at Operating Revenue growth rate 940 Plug to make balance sheet balance 3,054 258 46 97 290 51 109 146 300 53 112 Increase at Operating Revenue growth rate Bank Loan Payables 0 CPLTD 1 Other 2 Current Liabilities 3 LTD Equity 5 Total Liabilities & Equity 16 37 Working Capital 38 99 3,649 248 44 93 4,034 1,877 920 6,831 2,399 269 48 101 2,816 1,783 2,803 7.403 1.695 280 SO 105 2,129 1.734 3,836 7,699 3,455 1,831 1,832 7,118 1,390 1,682 4,918 7,991 611 1,629 LTD of previous year minus CPLTD of current year 6,022 quity of previous year plus net income of current year 8,263 3,635 3,788 3,939 4,097 4,252 4,397 Exclude Bank Loan Preview Layout Views Home Hoding 100 Zoom to 100 H13 fixe E F G H 2024 2025 TV A B . D 1 PAN Airways Cash Flow Valuation 2 3 (in '000 S) 2021 2022 2023 4 Income before taxes 5 + Interest 6 Income before interest and taxes (EBIT) 7 8 EBIAT 9 Change in Working Capital 10 - Change in Other assets 11 Free Cash Flow (FCF) 12 PV of FCF 13 - Existing Debt 14 - Value of equity 15 16 17 18 19 20 21 22 23 24 25 10