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Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (the company that operates Tasty Fried Chicken and Pizza Party), in
Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (the company that operates Tasty Fried Chicken and Pizza Party), in condensed form, including some information from the cash flow statement: (amounts are in millions) Mmm Good Foods Incorporated 2019 $ 705 Balance Sheet Cash and short-term Investments Accounts receivable Inventory Other current assets Long-lived assets Total assets Current liabilities Total liabilities Noncontrolling interest Shareholders' equity Total liabilities and equity Income Statement Sales Cost of sales Gross margin Earnings before interest and taxes Interest Taxes Income from discontinued operations Net income Share price Earnings per share Number of outstanding shares (millions) Cash Flows Cash flow from operations Capital expenditures Dividends Required: 371 37 377 4,002 $ 5,492 $ 1,374 11,136 (5,644) $ 5,492 $ 6,376 3,503 $2,873 $ 1,626 308 325 624 $ 1,617 $ 64 4.21 355.1 $ 1,205 423 749 Determine the valuation of the company at the end of 2019 using each of the following three methods. Assume earnings and cash flows for the coming 10 years are equal to the earnings and cash flows in 2019; the appropriate free cash flow multiple is 23.4. (Enter your answers in millions rounded to nearest whole number.) a. Market capitalization. b. Enterprise value. c. Free cash flow multiple.
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