greshak company, inc. is a leading manufacturer of thing-of-a-ma-jigs. assume you are a financial analyst at greshak and have been charged with the task of estimating the value (i.e., intrinsic value) of the company's outstanding common stock at december 31, 2020. as part of that analysis, management has provided you with the company's most recent income statement and balance sheet for 2020 as well as financial projections of each for the next 4 years. assume greshak's applicable tax rate is 38% and that management has determined its weighted average cost of capital (wacc or discount rate) to be 12.0%. further, assume greshak has estimated its long-term sustainable growth rate (g) for its free cash flows (fcf) to be 3% upon reaching earnings stabilization after 2024 (the last year in the projection period). required: based on the above (and given the financial projections below): 1. using ms-excel, replicate greshak companys balance sheets, income statements and templates presented on the following pages (i.e., enter them into ms-excel). make sure all schedules are clearly labeled correctly and look professional (i.e., they should be easy to follow and look nice). 2. calculate greshaks projected free cash flow (fcf) for 2021 through 2024 using ms-excel and the template on the following page. assume that year-over-year changes in projected operating current assets and operating current liabilities represent the inputs for calculating projected annual investments in net operating working capital. assume the projected year-over-year changes in gross fixed assets represent capital expenditures for each year. 3. using ms-excel, create the templates on the following pages and calculate the intrinsic value of greshaks operations (i.e., the estimated value of the company) using the data above.

Greshak Company, Inc. Financial Statements with Projections All amounts in millions of USD Greshak Company, Inc. Projected Free Cash Flow (FCF) Input Sheet Alamounts in milions of USD Greshak Company, Inc. Intrinsic Valuation at December 31, 2020 All amounts in milions of USD Weighted Average Cost of Capital (WACC) Estimated L-T Growth Rate \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Projection } \\ \hline \multirow{2}{*}{2021} & 2022 & \multirow{2}{*}{2023} & \multicolumn{2}{|c|}{2024} \\ \cline { 4 - 5 } & & FCF & Terminal \\ \hline \end{tabular} Free Cash Flow Constant Growth Value = FCF /( WACC g ) Projected Cash Flows Value of Operations or 100% of Company How much is each share of common stock worth? Value of 100% of Comparry Less: Value of Interest-Bearing Debt Less: Value of Preferred Stock Value of Common Equity Number of Common Shares Outstanding (millions] Price per Share Book Value per Share Price-to-Book Ratio