Home Insert Draw Page Layout Formulas Data Review View X Calibri (Body) v 11 v ' ' D v Paste B I U M J32 fx B C Tell me Conditional Formatting General $ % " Format as Table v Cell Styles DMM Share Comments Insert Delete Editing Analyze Format Data A D E F G H | 1 2 3 Based on the latest financial statements and other financial data of the SCS Corporation presented below, calculate the following: a) Free cash flows (30 points) 4 b) Enterprise Value (10 points) 5 6 c) Estimated value per share (10 points) Assume that SCS is a mature company and is growing at a constant growth rate. 7 8 9 All amounts are in USD in millions 10 INCOME STATEMENT 11 Fiscal year ends in February. BALANCE SHEET Assets Liabilities and stockholders' equity 12 13 Revenue Cost of revenue 14 Gross profit 15 Total operating expenses 16 EBITDA 3,056 (2,049) 1,007 (780) 227 Total cash Receivables Inventories Prepaid expenses 283 Current liabilities 300 Short-term debt 30 185 Accounts payable 223 19 Accrued liabilities 116 Other current assets 67 Other current liabilities 184 17 Depreciation (66) Total current assets 854 Total current liabilities 553 18 Operating income (EBIT) 161 Gross property, plant and equipment 1,433 Long-term debt 292 19 Interest Expense (18) Accumulated Depreciation (998) Other long-term liabilities 68 20 Income before taxes 143 Net property, plant and equipment 435 Total non-current liabilities 360 21 Provision for income taxes (36) Goodwill 138 Total liabilities 913 22 Net income 107 Intangible assets 46 23 Other long-term assets 203 Stockholders' equity 763 24 Total non-current assets 822 25 26 Additional information Weighted average shares outstanding (millions) Total assets 1,676 Total liabilities and stockholders' equity 1,676 117 27 Tax rate 25.00% 28 CapEx (80) 29 WACC 7.60% 30 r(free) growth rate 2.10% 31 32 33 NWC increase from previous year For the purposes of this exercise, working capital consists of: Accounts receivable, inventory, and accounts payable 5.00% 34 35 a) 36 37 Instructions Questions a-c Extra credit + J K