Consider the following balance sheet and income statement for Mmm Good Foods Inc. (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)

Required:

Determine the valuation of the company at the end of 2016 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 2016; 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.

714 Mmm Good Foods Inc. 2016 $ 380 46 422 4,056 $ 5,618 $ 1,419 11,154 (-5,536) 5,618 $ $ 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 $ $ 6,466 3,548 2,918 1,635 317 334 615 1,599 73 5.11 356.0 $ $ 1,214 414 744 million a. Market capitalization b. Enterprise value c. Free cash flow multiple million million