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Below are selected financial data on ABC Industries Inc. ABC has 3.32 billion shares outstanding and the current share price is $9.36. Assume that all

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Below are selected financial data on ABC Industries Inc. ABC has 3.32 billion shares outstanding and the current share price is $9.36. Assume that all cash and short-term investments are considered excess cash. In addition, assume that the market value of debt is equal to the book value of debt. Calculate the enterprise value of ABC. Express the enterprise value in S-billions and round to two decimals (do not include the 5-sign in your answer). Assets Cash & Short-Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Balance Sheet (in $-billions) Liabilities $5.00 Accounts Payable $15.00 Short-Term Debt $20.00 Current Maturities of Long-Term Debt $4.00 Other Current Liabilities $44.00 Total Current Liabilities $25.00 $20.00 $30.00 $18.00 $93.00 Property, Plant & Equipment $410.00 Long-Term Debt Less Accumulated Depreciation ($110.00) Capital Lease Obligations Net Property, Plant & Equipment $300.00 Total Debt $100.00 $0.00 $100.00 Goodwill & Intangible Assets Other Long-Term Assets $10.00 Deferred Taxes $15.00 Other Long-Term Liabilities ($10.00) $17.00 Total Liabilities $200.00 Shareholders' Equity $169.00 $369.00 Total Liabilities and Shareholders' Equity $369.00 Total Assets The table below shows free cash flow projections for four different projects. In addition, the table also shows the NPV, IRR, and Payback period for each project. If you can only invest in one project, which one should you pick? Year 0 1 Project III (20,000) 5,000 10,000 15,000 5,000 2 Project Free Cash Flows Project 1 Project 11 (20,000) (10,000) 5,500 5,500 5,500 5,500 5,500 5,500 5,500 40,000 9.00% 13.00% 7,681.24 7,002.43 19.6890 21.9090 7 Project IV (10,000) 1,000 2,000 3,000 4,000 5,000 14,000 3 4 5 6 7 Interest Rate NPV 11.00% 6,882.25 25.33% 3 12.00 7,094,63 26.639 4 IRR Payback Period (in Years) Ol Project 1 4 II. Project 11 III. Project 111 IV. Project IV OV. None 19V

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