A five-year income forecast for Sliver, Inc., along with other pertinent information is shown below.

Five-Year Forecast ($ MM) 2021 2022 2023 2024 2025 Revenue 957.9 972.2 986.8 1,001.6 1,016.6 Cost of goods sold 862.1 875.0 888.1 901.4 915.0 SG&A 67.0 68.1 69.1 70.1 71.2 EBIT 28.7 29.2 29.6 30.0 30.5 Interest expense 12.5 13.4 13.8 14.1 14.4 EBT 16.2 15.7 15.8 16.0 16.1 Taxes 5.5 5.3 5.4 5.4 5.5 Net income 10.7 10.4 10.5 10.5 10.6 .

Other projections: Increase in net working capital 5.7 5.8 5.9 6.0 6.1 Capital expenditures 28.7 29.2 80.3 62.2 30.5 Depreciation 52.7 53.5 54.3 55.1 55.9 .

Other data at end of 2020: Tax rate 34.0% Book value of debt ($ MM) 192.3 Book value of equity ($ MM) 364.9 Share price ($) 10.5 Shares outstanding (MM) 51.5 Interest rate on company debt 6.1% 10-year T-bond rate 5.0% Inflation projection 2.5% Invested Capital $150MM

a)NOPAT for 2021 is:

b)FCF for 2021 is:

c)What is the projected ROIC for year 2021?

d)What is the projected EBIT margin for 2022?

e)What is the projected gross profit margin for 2023?

f)Assuming no dividends are projected for 2021, what is the projected ROE for 2021?

g)What is the debt to capital ratio at the end of 2020?

h)Invested capital at end of 2020 for Smart Co. is $10.787 billion. ROIC is projected at 15% for 2021 and WACC is estimated at 7.5%.

Projected economic profits for 2021 is (in millions)

i)Invested capital at end of 2020 for Dumb Co. is $1 million. The present value of future economic profits is $400,000. WACC is 10%.

Enterprise value of Dumb Co. at end of 2020 is: