Alpha Analysts Group, have been asked to conduct the following evaluations for Crown Resort on the Australian Securities Exchange (ASX) for 2017 and 2018. 1) Profitability Breakdown 2) Growth Valuation 3) Forecast Financial Statements for a period of 3 years. (2019 to 2021) 4) Capital Structure Given the following reformulated Income Statement and Balance Sheet answer Questions 1 to 8. (The Annual report for 2017 and 2018 is provided.) Reformulated Income Statements 2017 2018 $3,334,487 $3,462,900.00 $1,835,408 $172,500.00 $5,169,895 $3,635,400.00 Operating Revenue Sales Other Revenue and Income Total Less Operating Expenses Expenses Total operating expenses Total operating income before tax Income tax Expense Operating Income after tax Finance Costs Interest Revenue Net Finance Expenses Share of profits of associates and Joint venture entities Profit for the year (Net income) $3,143,274.00 $2,851,800.00 $3,143,274.00 $2,851,800.00 $2,026,621.00 $783,600.00 $106,815.00 $171,000.00 $1,919,806.00 $612,600.00 $143,617.00 -$76,100.00 $9,648.00 $30,100.00 $133,969.00 -$46,000.00 $39,132.00 $1,824,969.00 $6,600.00 $573,200.00 Reformulated Balance Sheets Operating Asset Cash and Cash equivalents Trade and Other receivables Inventories Prepayments Property, plant and equipment Other financial assets Deferred tax assets Receivables Other financial assets (Non-Current) Investments (Non-current) Investments in associates (Non- Current) Licences Other intangible assets Other assets (Non-current) 2017 $8,552,620.00 $1,771,227.00 $225,290.00 $17,457.00 $35,465.00 $3,959,191.00 $9,375.00 $354,701.00 $145,735.00 $21,892.00 $64,764.00 2018 $8,171,700.00 $1,844,600.000 $172,300.00 $17,300.00 $32,800.00 $3,880,700.000 $9,200.00 $266,900.00 $143,000.00 $23,300.00 $235,511.00 $1,097,296.00 $562,720.00 $51,996.00 $187,800.00 $1,080,600.00 $462,800.00 $50,400.00 (Less) Operating Liabilities Trade and other payables Income tax payable Provisions (Current) Other payables Deferred tax liabilities Provisions (Non-current) Net Operating Assets $1,429,467.00 $446,503.00 $118,168.00 $210,788.00 $224,802.00 $377,423.00 $51,783.00 $7,123,153.00 $1,519,000.00 $427,500.00 $165,300.00 $225,100.00 $287,600.00 $380,900.000 $32,600.00 $6,652,700.00 $350,109.00 $25,700.00 Financial Liabilities Interest-bearing loans and borrowings (Current) Interest-bearing loans and borrowings (Non-current) Other financial liabilities (Non-current) Other financial liabilities (Current) $1,594,889.00 $2,790.00 $1,467,000.00 $2,100.00 (continue) 2017 2018 $1,947,788.00 $1,494,800.00 Net Financial Obligations Shareholder's Equity Contributed equity Treasury shares Reserves Retained earnings Non-controlling interest Common shareholders' equity $53,233.00 $71,900.00 $19,377.00 -$15,700.00 $60,792.00 -$60,500.00 $5,153,080.00 $5,306,000.00 $34,103.00 $5,175,365.00 $5,157,900.00 Net financing $5,175,365.00 $5,157,900.00 Question 7 . Calculate Value per Share as follow: Use Reol, calculated in Question 6 Use the cost of Operations, calculated in Question 5. Use Growth in Reol, calculated in Question 6 to calculate the continuing value. Cost of operations Total PV of Residual Operating Income (Reol) (use cost of operations to discount Reol) Continuing value (Growth rate = Growth in Reol 2021) PV of Continuing Value Net Operating Assets as of 2018 Value of operations (=Total PV of Reol + PV of Continuing value + NOA as of 2018) Net Financial Obligations as f 2018 Value of common equity Number of shares outstanding Value per share 677.16M ? Question 8 Analyse the Capital Structure for Crown Resort in 2018 as follow: Construct a common-size of the liabilities and equity a. Alpha Analysts Group, have been asked to conduct the following evaluations for Crown Resort on the Australian Securities Exchange (ASX) for 2017 and 2018. 1) Profitability Breakdown 2) Growth Valuation 3) Forecast Financial Statements for a period of 3 years. (2019 to 2021) 4) Capital Structure Given the following reformulated Income Statement and Balance Sheet answer Questions 1 to 8. (The Annual report for 2017 and 2018 is provided.) Reformulated Income Statements 2017 2018 $3,334,487 $3,462,900.00 $1,835,408 $172,500.00 $5,169,895 $3,635,400.00 Operating Revenue Sales Other Revenue and Income Total Less Operating Expenses Expenses Total operating expenses Total operating income before tax Income tax Expense Operating Income after tax Finance Costs Interest Revenue Net Finance Expenses Share of profits of associates and Joint venture entities Profit for the year (Net income) $3,143,274.00 $2,851,800.00 $3,143,274.00 $2,851,800.00 $2,026,621.00 $783,600.00 $106,815.00 $171,000.00 $1,919,806.00 $612,600.00 $143,617.00 -$76,100.00 $9,648.00 $30,100.00 $133,969.00 -$46,000.00 $39,132.00 $1,824,969.00 $6,600.00 $573,200.00 Reformulated Balance Sheets Operating Asset Cash and Cash equivalents Trade and Other receivables Inventories Prepayments Property, plant and equipment Other financial assets Deferred tax assets Receivables Other financial assets (Non-Current) Investments (Non-current) Investments in associates (Non- Current) Licences Other intangible assets Other assets (Non-current) 2017 $8,552,620.00 $1,771,227.00 $225,290.00 $17,457.00 $35,465.00 $3,959,191.00 $9,375.00 $354,701.00 $145,735.00 $21,892.00 $64,764.00 2018 $8,171,700.00 $1,844,600.000 $172,300.00 $17,300.00 $32,800.00 $3,880,700.000 $9,200.00 $266,900.00 $143,000.00 $23,300.00 $235,511.00 $1,097,296.00 $562,720.00 $51,996.00 $187,800.00 $1,080,600.00 $462,800.00 $50,400.00 (Less) Operating Liabilities Trade and other payables Income tax payable Provisions (Current) Other payables Deferred tax liabilities Provisions (Non-current) Net Operating Assets $1,429,467.00 $446,503.00 $118,168.00 $210,788.00 $224,802.00 $377,423.00 $51,783.00 $7,123,153.00 $1,519,000.00 $427,500.00 $165,300.00 $225,100.00 $287,600.00 $380,900.000 $32,600.00 $6,652,700.00 $350,109.00 $25,700.00 Financial Liabilities Interest-bearing loans and borrowings (Current) Interest-bearing loans and borrowings (Non-current) Other financial liabilities (Non-current) Other financial liabilities (Current) $1,594,889.00 $2,790.00 $1,467,000.00 $2,100.00 (continue) 2017 2018 $1,947,788.00 $1,494,800.00 Net Financial Obligations Shareholder's Equity Contributed equity Treasury shares Reserves Retained earnings Non-controlling interest Common shareholders' equity $53,233.00 $71,900.00 $19,377.00 -$15,700.00 $60,792.00 -$60,500.00 $5,153,080.00 $5,306,000.00 $34,103.00 $5,175,365.00 $5,157,900.00 Net financing $5,175,365.00 $5,157,900.00 Question 7 . Calculate Value per Share as follow: Use Reol, calculated in Question 6 Use the cost of Operations, calculated in Question 5. Use Growth in Reol, calculated in Question 6 to calculate the continuing value. Cost of operations Total PV of Residual Operating Income (Reol) (use cost of operations to discount Reol) Continuing value (Growth rate = Growth in Reol 2021) PV of Continuing Value Net Operating Assets as of 2018 Value of operations (=Total PV of Reol + PV of Continuing value + NOA as of 2018) Net Financial Obligations as f 2018 Value of common equity Number of shares outstanding Value per share 677.16M ? Question 8 Analyse the Capital Structure for Crown Resort in 2018 as follow: Construct a common-size of the liabilities and equity a