Free Cash Flow Analysis. I need help calculating the fields that are highlighted in green and not filled in. Please show how you arrived at each calculation.
- - ~ 1 Rt 1.20% MRP: 6.50% Beta 1.3 Cost of Equity ("K6"). 9.7% Growing Annuity Period Growth 250% Horizon Period Growth 100% Analysis Years: 4 Horizon Period Years 6 Valuation date: 12731718 22.0% ("In otAnalysls Period Growth) ("In otAnalysls Period Growth) Long Term Debt (6) 12/31/2018 100 0% Comparative Balance Sheets Assets 2018 2019 2020 2021 2022 Current Assets Cash 81 Equivalents 1,663 2,592 3,763 5,142 7,185 Accounts receivable 3,425 3,712 3,912 4,480 4,600 Inventories 1 ,778 1 ,899 2,023 2,400 2,750 Other current assets 649 660 690 700 710 Total current assets 7,515 8,863 10,388 12,722 15,245 Net Plant, property and equipment 9,205 9,530 9,810 10,006 10,800 Other Longetenn assets 2 300 2 310 2 310 2 320 2 330 Total Long-term Assets 11,505 11,840 12,120 12,326 13,130 Total Assets 19,020 20 703 22 506 25,045 25,375 Income Statements 2016 2019 2020 2021 2022 Revenue 38,050 41,620 46,250 51,040 Cost of Goods Sold 15 074 16 488 18 323 20 220 Gross Prot 22,916 25,132 21,921 30,820 Depreciation 937 967 991 1 ,040 Selling &Admin Expenses 18,405 19,855 21,340 23,420 Other Operating Expenses 171 184 198 217 Operating Income 3,463 4,126 5,393 6,143 Other Gains 8: Income 150 75 55 62 EEIT 3,613 4,201 5,453 6,205 Interest Expense 258 252 229 198 Taxable Income 3,355 3,949 5,224 6,007 Income Tax Expense (round to $1 738 869 1,149 1,322 Net Income 2,611 3,080 4,075 4,635 Shares Common Stock Outstanding 400 410 410 425 425 Dividends Paid $ 500 $ 500 $ 600 $ 700 $ 800 Description Coupon rate Par Value Weight AereTax % Weighted 30 Year Bond Due 511572030 7.2% 1 210 28.8% 5.6% 1.6% 30 Year Bond Due 713172038 6.1% 1,550 36.9% 4.8% 1.8% 30 Year Bond Due 511512030 5.3% 1,440 34.3% 4.1 % 1.4% 4,200 Cost of Debt (Kit): 4.3% 100.0% WACC: Rate Bahnce Weight Weighted Cost of Equity. (Using CAPM) 9.7% 7,843 65.1% 6.3% Cost of Debt (above) 4.8% 4 200 34.9% 1.7% 12,043 WAC C: 3.0% Liabilities 2013 2019 2020 2021 2022 Current Liabilities Accounts payable 3,467 3,125 3,100 3,210 3,266 Accruals 2,410 2,400 2,435 2,000 2,150 Other current liabilities 750 766 647 650 450 Total current liabilities 6,627 6,291 6,182 5,860 5,866 LonHerm debt 4,200 4,102 3,736 3,223 2,759 Total liabilities 10,327 10,393 9,918 9,033 3,625 Ownel's Equity Preferred Stock 350 350 350 350 350 Common Stock & APIC 2,200 2,200 2,000 2,000 1,900 Retained Earnings 5,643 7,760 10,240 13,615 17,500 Total owner's equity 8,193 10,310 12,590 15,965 19,750 Total Liabilities and Equity 19,020 20,703 22,503 25,043 20,375 TRUE TRUE TRUE TRUE TRUE Cash Flow From Assets: =0 1 2 3 4 Operating Cash Flow Net Capital Spending Change in Net Working Capital Free Cash Flow PV of FCF: " Growth of Free Cash Flow: Horizon Period Growth (g) Terminal Period Growth (g) PV of Analysis Period: Initial Horizon FCF Value of Horizon Period PV of Horizon Period Initial Terminal FCF: Value of Terminal PV of Terminal Enterprise Value. Less 'Debt' ((10 1:0) Available to Shareholders Value per Share: at 1:5 at 1:4 at 1:11 at 1:10 at 1273172018 Geometrchverage 25% ofAnalysls period Growth 10% oiAnalysls period Growth
