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. F 16 H B C Actual 2020 2021 4.23 8,219 8,564 D Projected 2022 2023 4.0934.0% 8.907 9.263 Notes 2024 3.8% 9,615 2025 3.4% 9.942 2.277 1844 582 1.790 2565 T437 H374 1.300 6,677 458 385 1365 6.911 2346 1,899 599 480 397 1433 7,154 2,416 1956 617 503 409 1 Sos 7,406 2.488 2015 636 527 421 1.580 7,667 2563 2.075 055 552 434 1,659 7,938 Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of 304 J.0% 3.0% 4.59 3.04. 50 Increase at a yearly rate of 1.85% (550) 1.307 274 1,033 2.004 (606) 1.397 5.0% 1.948 527 1,370 288 1,083 293 1.101 2 Income Statement (in '000 $) 3 Operating Revenue growth rate 4 Total Operating Revenues 5 6 Wages, benefits, payroll support, incentives 7 Aircraft fuel incl. hedging gains. losses 8 Aircraft maintenance/rent 9 Landing fees and other rentals Depreciation amortization 11 All other expenses 2 Total Operating Expenses 13 Operating Income 15 Total non-operating come (expense) Income before taxes 17 Income tax expense (benefit) 18 Net Income 19 20 Cash and investments 21 Accounts receivable 22 Inventory and supplies, net 23 Other 24 Current Assets 25 Other 26 Total Assets 27 28 Bank Loan 29 Payables 30 CPLTD 01 Other Current Liabilities 33 LID 34 Equity 35 Total Liabilities & Equity 36 Working Capital 30 1.542 1,653 1.753 075 7499) 2524 1.067 1.154 1229 234242 258 BILN843 912971 Balance Sheet 111.934 2015 2.000 12:49 1.301 1354 165 672 699 192 200 200 4,020 4.189 4356 2.929 3046 6,831 7,118 7.403 2.150 1408 727 210 5531 2262 1.461 755 Increase at Operating Revenue growth rate 2339 1511 780 332 4,863 3.400 8.269 4,703 3,288 7,991 Increase at Operating Revenue growth rate 7,699 3.054 B3649 BRE Plus to make balance sheet balance 258 Increase at Operating Revenue growth rate 46 97 3,455 1,831 2.399 269 48 101 2,816 1,753 2.803 1.695 280 50 105 2.129 1.734 3,836 7,699 940 1:46 290 300 51 109 112 1,300 011 1 652 1629 4,918 6.024 7.991 8.263 4,034 1.872 920 6,831 LTD of prevous year minus CPLTD of current year Equity of previous year plus petiscome of current year 2,118 3,635 3.788 3.939 1,099 4.251 4,397 Exclude Bank Loan Prob. 1 WACC Prob. 2 Gate NPV and IRR Prob. 3 PAN Airways financials Prob, 4 PAN Airways valuation Prob. 5 JTM Bala 1 E F G H 2024 2025 TV B D 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 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 9 IS 16 17 18 19 20 21 TIL Prab PAN Airways wanation Pro 5 ITN 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. R24 ROL 1 fx Number B Actuall 2020 F G H 2021 D Projected 2022 2023 4.000 4.09 8.907 9,263 4.29 8,564 8.219 2024 1.89 9,615 Notes 2025 3.49 9.942 2211 1 790 $65 437 374 1300 6,677 2227 1,814 582 -458 385 1365 6,911 1 2 Income Statement (in '000 S) 3 Operating Revenue growth rate Total Operating Revenges 5 6 Wages, benefits, payroll support, incentives 7 Aircraft fuel incl. hedging gans losses 8 Aircraft maintenance rent 9 Landing fees and other rentals 10 Depreciation amortization 11 All other expenses Total Operating Expenses 13 14 Operating Income 5 Total non-operating income (expense) 15 Income before taxes 17 Income tax expense (benefit) 18 Net Income 29 20 Cash and investments 21 Accounts receivable 22 Inventory and supplies, net 23 Other 24 Current Assets 25 Other 2 Total Assets 2346 1 899 1599 480 397 1433 3,154 2,416 1.956 617 503 409 1 505 7.406 2488 2563 2015 2075 636 655 527 552 421134 1.580 7.667 7.938 Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of 3.04 30 3.096 4.89 3.0% 5.0 1.659 (409 LIS 1,253 20 1,229 258 971 182 (5500 1.302 274 1.033 Increase at a yearly rate of 1.048 2,004 L2Z 006) 1370 1397 288 193 1,083 1.104 5:04 PAN AIRWAYS 1.542 1.653 475 1.067 224 242 8.13 912 Balance Sheet 1934 2015 1040 1 301 645 672 192 200 4,020 4,189 2.811 2.929 6,831 TALIB Increase at Operating Revenue growth rate 2.096 0.354 699 205 4356 3,046 9,03 2.180 12408 727 216 4331 16 7.699 2262 1.461 1.311 7551750 132522 +3703 4,863 3288 3,400 7,991 8.263 Increase at Operating Rat growth rate 2.399 14 SA Plug to make balance sheet balance 3.649 248 + 03 3,054 258 +5 20 Bank Loan 29 Payables 30 CPLTD 31 Other Current Labbes LTD 34 EU Total Liabilities & Equity 1.695 280 50 103 300 9:40 190 31 100 1190 Increase at Operating Regrowth rate 112 48 101 3,816 DZ 2.803 1.103 1134 1682 1.831 1,832 118 920 1029 LTD of previous year mims CPLTD of current year 5022 Equity of previous year plus encome of current year 6,831 7.699 4,918 24991 Working Capital 2.758 3.939 4,607 1252 19T El A 2 B D PAN Airways Cash Flow Valuation E F 3 G H 2021 (in '000 S) 4 Income before taxes 5 + Interest - Income before interest and taxes (EBIT) 2022 2023 2024 2025 TV 6 2 8 EBIAT 9 Change in Working Capital 10 Change in Other assets 11 Free Cash Flow (FCE) 12 PV of FCF 13 Existing Debt 14 = Value of equity 15 16 12 18 19 20 21 Pro 1 WACC Prob 2 Gate NPV and Prob. PAN Ananda READY Prob. a PAN Airways vabation