70 (12) R Q4. Use data below to value Liquor Stores, which operates in retail (grocery and food) industry, average cost of capital is 6.56%. LIQ.TO had a dividend yield of 13.57% as of early March 2016; its management team lowered it to 4.52% on March 9, 2016. LIQ stock market price in March 2016 was $8.25.1 1 In millions of CADA 20110 20120 20130 20140 Net income 250 190 110 130 Depreciation 70 90 100 Changes in working capitala (11) 21 Total cash from operations 320 300 51 21 Capital expenditures (13) (12) Acquisition of business (1) Sale of fixed assets a 00 Total cash from investing (16) (12) (12) Total cash dividends paida (24) (23) (23) (23) Common stock, neto 00 20 10 58 Debt, neto (1) 90 (18) (43) Total cash from financing (40) Cash interest paida 801 70 801 80 Cash taxes paid 0 50 11 Revenue 5920 6300 6610 6940 Operating income 430 350 24 260 Net income 240 190 110 130 Cash and short-term investments a 50 50 Short-term debt 400 0 0 Current portion of long-term debta 560 On Long-term debt 460 1470 1340 92 Common shares outstanding a 230 230 27 1 Note: on March 3, 2016, CIBC World Markets ranked LIQ as sector performer in Merchandising and Consumer Products industry. Their 12-18 month target in March 2016 was $11.50.1 1 Value the firm using FCFF method. I (26) (11) (11) R R 20 30 R 230 B 70 (12) R Q4. Use data below to value Liquor Stores, which operates in retail (grocery and food) industry, average cost of capital is 6.56%. LIQ.TO had a dividend yield of 13.57% as of early March 2016; its management team lowered it to 4.52% on March 9, 2016. LIQ stock market price in March 2016 was $8.25.1 1 In millions of CADA 20110 20120 20130 20140 Net income 250 190 110 130 Depreciation 70 90 100 Changes in working capitala (11) 21 Total cash from operations 320 300 51 21 Capital expenditures (13) (12) Acquisition of business (1) Sale of fixed assets a 00 Total cash from investing (16) (12) (12) Total cash dividends paida (24) (23) (23) (23) Common stock, neto 00 20 10 58 Debt, neto (1) 90 (18) (43) Total cash from financing (40) Cash interest paida 801 70 801 80 Cash taxes paid 0 50 11 Revenue 5920 6300 6610 6940 Operating income 430 350 24 260 Net income 240 190 110 130 Cash and short-term investments a 50 50 Short-term debt 400 0 0 Current portion of long-term debta 560 On Long-term debt 460 1470 1340 92 Common shares outstanding a 230 230 27 1 Note: on March 3, 2016, CIBC World Markets ranked LIQ as sector performer in Merchandising and Consumer Products industry. Their 12-18 month target in March 2016 was $11.50.1 1 Value the firm using FCFF method. I (26) (11) (11) R R 20 30 R 230 B