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ABC's Projected Financial Statements are as follows: Income Statement 111/2015 12/31/2015 12/31/2016 Sales COGS Wages Rent and Overhcad Depreciation and Amortization Earnings before interest and
ABC's Projected Financial Statements are as follows: Income Statement 111/2015 12/31/2015 12/31/2016 Sales COGS Wages Rent and Overhcad Depreciation and Amortization Earnings before interest and taxes Interest 1.656,000 1,159,200 317400 111.780 5.796 61,824 2,000,000 1.400,000 383,333 135,000 5,630 76,036 Earnings Before Taxes 61,824 18,547 43,277 76,036 22,811 53,225 TaxeS Net Income Dividends To Retained Earnings 43,277 53.225 Balance Sheet Required Cash Surplus Cash Accourts Receivable Inventory Prepaids Total Current Assets 5,000 8,773 46,000 82,800 2.300 139,873 30,000 4,057 55,556 100,000 2,778 192,391 45,000 50,000 50,000 100,000 Net Property, Plant and Equipment 56,304 68,000 Total Assets 196.177 260,391 Current Liabilities Accounts Payable Accrued wages 41.400 11.500 52,900 25.000 13,889 38,889 25,000 196,502 260,391 Total Current Liabilities Long Term Debt Owner's Equity Total Liabilities and Equity 100,000 100,000 143,277 196.177 Calculate the Enterprise Valuation Cash Flow for 2015 and. 2016 assm.ing the business conmmences opcrations on 1/1/2015 with a S100.000 capital infusion from its owncr as reflccted above. Afier 2016 Enterprise cash flow is expected to grow at 8% annually and the Discount rate is 20%. Tax rate for all years is 30%. What is the Enterprise Value of ABC Company today
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