Assuming a discount rate of 7.0% for large pharmaceutical companies, what do you estimate as Genzymes intrinsic market value for the management scenario? Please express your estimates as both an enterprise value and as a price per share. Be prepared to discuss and defend the key assumptions you made in your analysis.

10% 10% 11% 10% 10% 10% 10% 10% 10% EBITDA $835.6 $1,008.2 $1,382.1 $2,810.2 ($266.3) -7% ($288.1) 7% ($351.8) 7% $2,248.1 ($516.0) 7% ($614.7) 7% $1,671.2 (403.4) 7% ($57.6) $0.0 $3,173.4 ($694.2) 7% Depreciation & Amortization % of Revenues Other Expenses % of Revenues Operating Income (EBIT) % EBIT Margin ($201.1) ($0.1) ($106.4) ($0.0) ($226.4) ($0.1) ($2.0) ($0.0) ($65.6) ($0.0) ($205.8) $0.1 ($50.3) $0.0 ($73.7) $0.0 $0.0 $0.0 $0.0 $0.0 $653.9 $0.2 $581.5 $0.1 $503.7 $0.1 $514.4 $0.1 Taxes % Tax rate ($255.5) ($204.5) -35% -33% -22% $377.0 NOPAT (Net Op Profit After Tax) $398.4 NOPAT as a % of Revenue Depreciation & Amortization Capital Expenditures Capital Expenditures as a% of Revenue or forecasted cap Ex Change in Working Capital ($121.4) ($180.0) 35% $382.3 $334.4 9.4% 8.1% $266.3 $288.1 (662.00) $ (728.20) $ $980.1 $1,210.2 $1,658.5 $2,195.5 $2,479.2 $0.2 $0.2 $0.2 $0.3 $0.3 ($343.0) ($423.6) ($580.5) ($768.4) ($867.7) 35% 35% 35% 35% 35% $637.0 $786.6 $1,078.0 $1.427.1 $1,611.5 12.7% 13.7% 14.6% 16.3% 16.3% $351.8 $403.4 $516.0 $614.7 $694.2 (801.02) $ (881.12) $ (969.23) $ (1,066.16) $ (1,172.77) (220.3) S (178.3) s (389.1) $ (341.4) $ (274.6) $ $ (6.5) $ (9.3) $ Free cash flow FCF Margin % ($19.94) -0.5% ($115.10) -2.8% ($32.50 -0.6% $130.62 2.3% $235.63 3.2%) $634.27 7.2% 5858.31 8.7% Discounted Cash Flows Assumption WACC EDITDA Multiple Perpetuity Growth Rate TV Perp (1), Multiple (0) 6% 10.4x 3.0%