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Doc Tom is preparing a presentation that analyzes the valuation of the common stock of Dante Corporation. Tom has prepared preliminary valuations of Dante using
Doc Tom is preparing a presentation that analyzes the valuation of the common stock of Dante Corporation. Tom has prepared preliminary valuations of Dante using a FCFF model. Dante's 2018 and 2019 financial statements, contained in Exhibits 1 and 2, are prepared in accordance with US GAAP (in millions). Exhibit 1. Dante Corporate Partial Consolidated Balance Sheet (As of December 31) 2019 2018 Assets Current assets Cash and cash equivalents 477 474 Accounts receivable 717 721 Inventories 784 744 Total current assets Gross fixed assets 3,900 3,384 Total assets Liabilities and shareholders' equity Current liabilities Accounts payable 488 444 Accrued taxes and expenses 110 103 Notes payable 481 430 Total current liabilities Long-term debt 1,668 1,673 Common stock 528 555 Retained earnings Total liabilities and shareholders' equity Exhibit 2. Dante Corporation Consolidated Income Statement for the Year Ended 31 December 2019 (US$ Millions) Total revenues 3,270 Cost of goods sold 1,035 Selling, general, and administrative expenses 741 Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation expense 269 Operating income Interest expense 147 Pretax income ---- Income tax (at 33 percent) Net income Your task is to calculate the FCFF. Write your answer in decimal form and round it to two decimal places. Your
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