Based on your DCF analysis and other data (e.g. WACC) in this presentation, make a recommendation for whether the board of Panera Bread should accept the offer from Silver Capital Partners and explain why you come to this conclusion. (10 pointsP)

Please explain in details

Panera Bread \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|l|}{ Projected Cash Flows } \\ \hline For Fiscal Years Ending 12/31 (in 5 millions) & \begin{tabular}{c} (Actual) \\ 2016 \end{tabular} & \begin{tabular}{l} (Forecast) \\ 2017 \end{tabular} & \begin{tabular}{l} (Projected) \\ 2018 \end{tabular} & \begin{tabular}{l} (Projected) \\ 2019 \end{tabular} & \begin{tabular}{l} (Projected) \\ 2020 \end{tabular} & \begin{tabular}{l} (Projected) \\ 2021 \end{tabular} \\ \hline \multicolumn{7}{|l|}{ INCOME STATEMENT } \\ \hline Total Revenues & $2,795.4 & \begin{tabular}{r} $2,846.1 \\ 1.8% \end{tabular} & \begin{tabular}{r} $3,083.1 \\ 8.3% \end{tabular} & \begin{tabular}{r} 53,374.4 \\ 9.4% \end{tabular} & \begin{tabular}{r} $3,886.9 \\ 15.2% \end{tabular} & \begin{tabular}{r} $4,220.0 \\ 8.6% \end{tabular} \\ \hline Cost of Sales & \begin{tabular}{r} $2,205.4 \\ 78.9% \end{tabular} & $2,220.0 & $2,404.8 & \begin{tabular}{r} $2,632.0 \\ 78.0% \end{tabular} & \begin{tabular}{r} $3,031.8 \\ 78.0% \end{tabular} & \begin{tabular}{r} $3,291.6 \\ 78.0% \end{tabular} \\ \hline Gross Profit & $590.0 & $626.1 & $678.3 & $742.4 & $855.1 & $928.4 \\ \hline \begin{tabular}{l} Operating Expenses \\ Depreciation \& Amortization \end{tabular} & \begin{tabular}{l} $195.8 \\ $154.4 \end{tabular} & \begin{tabular}{l} $196.0 \\ $155.0 \end{tabular} & \begin{tabular}{l} $199.9 \\ $155.0 \end{tabular} & \begin{tabular}{l} $203.9 \\ $155.0 \end{tabular} & \begin{tabular}{l} $208.0 \\ $155.0 \end{tabular} & \begin{tabular}{l} $212.2 \\ $155.0 \end{tabular} \\ \hline Total Operating Expenses & \begin{tabular}{r} $350.2 \\ 12.5% \end{tabular} & \begin{tabular}{r} $351,0 \\ 12.3% \end{tabular} & \begin{tabular}{r} $354.9 \\ 11.5% \end{tabular} & \begin{tabular}{r} $358.9 \\ 10.6% \end{tabular} & \begin{tabular}{r} $363.0 \\ 9.3% \end{tabular} & \begin{tabular}{r} $367.2 \\ 8.7% \end{tabular} \\ \hline EBIT & $239.8 & $275.1 & $323.4 & $383.4 & $492.1 & $561.2 \\ \hline Adjustments & $0.0 & $0.0 & $0.0 & $0.0 & $0.0 & $0.0 \\ \hline EBIT (Adjusted) & \begin{tabular}{r} $239.8 \\ 8.6% \end{tabular} & \begin{tabular}{r} $275.1 \\ 9.7% \end{tabular} & \begin{tabular}{r} $323.4 \\ 10.5% \end{tabular} & \begin{tabular}{r} $383.4 \\ 11.4% \end{tabular} & \begin{tabular}{r} $492.1 \\ 12.7% \end{tabular} & \begin{tabular}{r} $561.2 \\ 13.3% \end{tabular} \\ \hline \begin{tabular}{l} Other Income (Expense) \\ Interest Expense (Income) \end{tabular} & \begin{tabular}{l} ($1.4) \\ $8.9 \end{tabular} & \begin{tabular}{r} $0.0 \\ $12.8 \end{tabular} & \begin{tabular}{r} $0.0 \\ $13.7 \end{tabular} & \begin{tabular}{r} $0.0 \\ $14.8 \end{tabular} & \begin{tabular}{r} $0.0 \\ $16.2 \end{tabular} & \begin{tabular}{r} $0.0 \\ $18.7 \end{tabular} \\ \hline Pre-Tax Income & $229.5 & $262.3 & $309.7 & $368.7 & $475.9 & $542.6 \\ \hline Income Tax Expense & \begin{tabular}{l} $84.3 \\ 36.7% \end{tabular} & \begin{tabular}{r} $94.43 \\ 36.0% \end{tabular} & \begin{tabular}{r} $111.49 \\ 36.0% \end{tabular} & \begin{tabular}{r} $132.71 \\ 36.096 \end{tabular} & \begin{tabular}{r} $171.33 \\ 36.0% \end{tabular} & \begin{tabular}{r} $195.33 \\ 36.0% \end{tabular} \\ \hline Net Income & $145.2 & $167.9 & $198.2 & $235.9 & $304.6 & $347.3 \\ \hline Depreciation \& Amortization & $154.4 & $155.0 & $155.0 & $155.0 & $155.0 & $155.0 \\ \hline EBITDA & $394.1 & $430.1 & $478.4 & $538.4 & $647.1 & $716.2 \\ \hline \end{tabular} CASH FLOW Capital Expenditures $200 $211 $200 $196 $196 $193 HistoricalBalanceSheet For Years Ending December 31 (in \$ millions) LIABILITIES \& EQUITY Current Liabilities Line of Credit Accounts Payable Other Payables Accrued Liabilities Notes Payable Other Current Liabilities Total Current Liabilities Long-Term Liabilities Long-Term Debt Capital Leases Notes Payable Other Liabilities Total Long-Term Liabilities Total Liabilities Stockholders' Equity Common Equity Additional Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity TOTAL LIABILITIES \& EQUITY Tangible Assets Tangible Net Worth Total Debt Historical Income Statement For Years Ending December 31 (in \$ millions) Total Revenues Cost of Sales Gross Profit General \& Administrative Expense Other Expense Depreciation \& Amortization Total Operating Expenses Operating Income Other Income / (Expense) Other Income (Expense) Interest Income (Expense) Total Other Income / (Expense) Earnings Before Taxes Income Tax Expense Net Income / (Loss) 2013201420152016 \begin{tabular}{rrrr} 17.5 & 19.5 & 19. & 22.5 \\ - & - & - & - \\ 285. & 333.2 & 359.5 & 408.6 \\ - & - & 17.2 & 17.2 \\ - & - & 2.9 & - \\ \hline 303.3 & 352.7 & 399.4 & 448.3 \end{tabular} \begin{tabular}{rrrr} - & 100.0 & 389.0 & 410.6 \\ - & - & - & - \\ - & - & - & - \\ 177.6 & 202.0 & 154.7 & 154.3 \\ \hline 177.6 & 302.0 & 543.7 & 564.9 \\ \hline 481.0 & 654.7 & 943.2 & 1,013.2 \end{tabular} \begin{tabular}{rrrr} 0.0 & 0.0 & 0.0 & 0.0 \\ 196.9 & 214.4 & 235.4 & 257.6 \\ 1,049.6 & 1,227.8 & 1,373.5 & 1,520.0 \\ (546.6) & (706.1) & (1,111.6) & (1,488.8) \\ \hline 699.9 & 736.2 & 497.3 & 288.8 \\ \hline 1,180.9 & 1,390.9 & 1,440.5 & 1,302.0 \\ \hline \hline \end{tabular} Check \begin{tabular}{rrrr} 901.2 & 1,113.3 & 1,156.4 & 1,045.0 \\ 420.2 & 458.5 & 213.2 & 31.8 \\ - & 100.0 & 406.2 & 427.8 \end{tabular} \begin{tabular}{rrrr} 2013 & 2014 & 2015 & 2016 \\ 2,385.0 & 2,529.2 & 2,681.6 & 2,795.4 \\ 1,837.6 & 1,982.4 & 2,135.5 & 2,205.4 \\ \hline 547.4 & 546.8 & 546.1 & 590.0 \\ 123.3 & 138.1 & 142.9 & 179.9 \\ 7.8 & 8.7 & 26.2 & 16.0 \\ 106.5 & 124.8 & 135.4 & 154.4 \\ \hline 237.7 & 271.6 & 304.5 & 350.2 \\ \hline 309.8 & 275.2 & 241.6 & 239.8 \end{tabular} \begin{tabular}{rrrr} 4.0 & 3.2 & (1.2) & (1.4) \\ (1.1) & (1.8) & (3.8) & (8.9) \\ \hline 3.0 & 1.4 & (5.0) & (10.3) \\ \hline 312.7 & 276.6 & 236.6 & 229.5 \\ 116.6 & 98.0 & 87.2 & 84.3 \\ \hline 196.2 & 178.6 & 149.3 & 145.2 \\ \hline \hline \end{tabular} Panera Bread \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|l|}{ Historical Financial Statements } \\ \hline \multicolumn{5}{|l|}{ Historical Balance Sheet } \\ \hline For Years Ending December 31 (in $ millions) & 2013 & 2014 & 2015 & 2016 \\ \hline \multicolumn{5}{|l|}{ ASSETS } \\ \hline \multicolumn{5}{|l|}{ Current Assets } \\ \hline Cash \& Equivalents & 125.2 & 196.5 & 241.9 & 105.5 \\ \hline Accounts Receivable & 33.0 & 36.6 & 38.2 & 53.5 \\ \hline Other Receivables & 51.6 & 70.1 & 77.6 & 59.4 \\ \hline Investments & - & - & - & - \\ \hline Inventory & 21.9 & 22.8 & 22.5 & 23.8 \\ \hline Prepaid Expenses & 43.1 & 51.6 & 59.5 & 69.2 \\ \hline Other Current Assets & 27.9 & 28.6 & 28.7 & - \\ \hline Total Current Assets & 302.7 & 406.2 & 468.3 & 311.4 \\ \hline \multicolumn{5}{|l|}{ Fixed Assets } \\ \hline Land & 2.9 & 2.1 & 1.6 & 5.6 \\ \hline Buildings \& Leasehold Improvements & 687.6 & 792.8 & 780.7 & 820.1 \\ \hline Equipment & 392.4 & 478.5 & 531.0 & 618.2 \\ \hline Furniture \& Fixtures & 176.5 & 197.2 & 188.7 & 204.6 \\ \hline Vehicles & - & - & - & - \\ \hline Total Fixed Assets & 1,259.3 & 1,470.6 & 1,502.0 & 1,648.5 \\ \hline Less: Accumulated Depreciation & (589.9) & (683.3) & (725.8) & (845.7) \\ \hline Net Fixed Assets & 669.4 & 787.3 & 776.2 & 802.8 \\ \hline \multicolumn{5}{|l|}{ Other Assets } \\ \hline Goodwill & 123.0 & 120.8 & 121.8 & 122.4 \\ \hline Other Intangible Assets & 79.8 & 70.9 & 63.9 & 54.8 \\ \hline Accumulated Amortization & - & - & - & - \\ \hline Intangible Assets, Net & 202.8 & 191.7 & 185.7 & 177.2 \\ \hline Other Assets & 6.0 & 5.7 & 10.6 & 10.2 \\ \hline Total Other Assets & 208.7 & 197.4 & 196.3 & 187.4 \\ \hline TOTAL ASSETS & 1,180.9 & 1,390.9 & 1,440.8 & 1,301.6 \\ \hline \end{tabular}