Assume that our client Sports Inc. is a publicly traded Sport Franchise that has 10,000,000 shares outstanding. Sports Inc faces a marginal tax rate of 35% and plows-back 40% of its net income into Retained Earnings.

First, you are to create the necessary Balance Sheets and Income Statement and then calculate the annual Cash Flow from Assets (aka: CFFA or Free Cash Flows (FCF)) for Sports Inc. A constraint here, however, is that your last CFFA (0) must range between $25,000,000 and $35,000,000 annually.

Second, after calculating Sports Inc.'s last CFFA, you are to assume that this corporation is a constant-growth perpetuity and estimate its present value (aka: intrinsic value, market value). Assume the market determined risk adjusted required rate of return (aka: the appropriate discount rate, WACC) for Sports Inc. is 4.25% and the growth rate in Sports Inc's CFFA is 2.00%.