finance queations

Question 4. Calculate free-cash flows and firm value Floormaster is a designer and manufacturing new business that has a revolutionary flooring system that requires very little labor to be installed. They are seeking VC investment to expand their operations and have approached the VC firm you work for as an analyst. Find below their financial statements and use all information provided to calculate the value of the business. (12 marks) FLOORMATER INC. PROJECTIONS - PRO FORMA FINANCIAL STATEMENTS gures are in ons 2021 20337 NGOO SD 200 1936 670 GLG 200 Revenge Cost of goods and Derating en Deprecation Operating income IT Capi Expenditures Investment in werking Capa Tax Rai 16 3 4.4 a. Calculate the firm free cash flows for the next 3 years. b. Calculate the terminal value in year 3 using the WACC as the discount rate and assuming that the long term growth rate is 3.5%. c. Calculate the WACC assuming that the company has a Debt/Equity ratio of 0.25. Their cost of debt (ra) is 6.50% (tax rate is 34%) and their cost of equity (.) is 20% d. Calculate the firm value today. END OF SYAM Question 4. Calculate free-cash flows and firm value Floormaster is a designer and manufacturing new business that has a revolutionary flooring system that requires very little labor to be installed. They are seeking VC investment to expand their operations and have approached the VC firm you work for as an analyst. Find below their financial statements and use all information provided to calculate the value of the business. (12 marks) FLOORMATER INC. PROJECTIONS - PRO FORMA FINANCIAL STATEMENTS gures are in ons 2021 20337 NGOO SD 200 1936 670 GLG 200 Revenge Cost of goods and Derating en Deprecation Operating income IT Capi Expenditures Investment in werking Capa Tax Rai 16 3 4.4 a. Calculate the firm free cash flows for the next 3 years. b. Calculate the terminal value in year 3 using the WACC as the discount rate and assuming that the long term growth rate is 3.5%. c. Calculate the WACC assuming that the company has a Debt/Equity ratio of 0.25. Their cost of debt (ra) is 6.50% (tax rate is 34%) and their cost of equity (.) is 20% d. Calculate the firm value today. END OF SYAM