Assume that you are a financial analyst. You would like to understand how Teladoc might have arrived at the goodwill impairment of $6.6 billion for Q1 2022. To do so, you try to reconstruct the spreadsheet (case Table 3) and assumptions that Teladoc used in its testing of goodwill impairment on March 31, 2022. You realize, however, that two key inputs to complete the spreadsheet are missing: the discount rate and yearly cash flow estimates. Experiment with different combinations of discount rates and reductions in yearly cash flows to compute goodwill impairment amounts. In other words, perform sensitivity analyses. For the discount rate, use four reasonable rates. For cash flows, use four percentage reductions in yearly numbers in Table 3. For the sake of simplicity, reduce them by a constant percentage. That is, if you reduce cash flow estimates for 2023 by x%, reduce the estimates for all subsequent years (till 2030) also by x%. Assume that all cash flows are full-year cash flows (i.e., no need to make partial year adjustments). a. Explain the rationale for your choice of the range of discount rates and the range of percentage reductions in yearly cash flows.b. Compute the goodwill impairment loss for the chosen discount rates and reductions in yearly cash flows. Present your answer in the table below.c. What combination of discount rate and reduction of cash flows (in percentage) get you closest to the $6.6 billion impairment reported by Teladoc? (Hint: there is no single correct answer to this question; your answer need not be exactly $6.6 billion). d. Based on your answer to the previous question, explain which of these two variables (reduction in yearly cash flows or increase in the discount rate) is more influential in determining the fair value of goodwill (all other variables held constant)?

\begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Sensitivity Analysis (Amount of goodwill impairment in $ billions) } \\ \hline \multirow[b]{2}{*}{\begin{tabular}{l} \%Reduction in yearly cash flows (Specify \\ percentage for each) \end{tabular}} & \multicolumn{4}{|c|}{ Discount Rate (Specify rate for each) } \\ \hline & A & B & C & D \\ \hline 1 & & & & \\ \hline 2 & & & & \\ \hline 3 & & & & \\ \hline 4 & & & & \\ \hline \end{tabular}