I am so sorry for posting 3 questions but unfortunately, I do not have any more options for posting questions. Hence I will be thankful if you may please answer all the 3 questions, I will give you a good rating and like it - Thank you. Q1 
QUESTION 2 
QUESTION 3
Project the 2021 plan year, based on the following: (Round to the nearest whole $$!) 2020 2021 Plan Whole $ Only Sales Cost of Goods Sold (ex. Dep) Depreciation (Dep) S, G, &A EBIT Net, Interest Expense Pre-Tax Income Taxes Net Income Projection Assumptions 15% Increase Same % of Sales Increase by $95 Same % of Sales $ 8.000 5,200 500 1,500 800 100 700 280 420 See Note Below 111 25.63% Tax Rate 36.5 Days Outstanding Sales 109.5 Days O/S COGS (ex. Dep) Cash Accounts Receivable Inventory Current Assets Net Plant, Property, and Equip Other Assets Total Assets $ 1,000 833 1,625 3,458 3,000 125 $ 6,583 Decrease by $15 Same Turnover - COGS (ex. Dep) 10% COGS (ex. Dep) Increase by $60 Accounts Payable Accrued Liabilities Short-Term Debt Other Current Liabilities Current Liabilities Long-Term Debt Stockholders' Equity Total Liabilities and Equity $ 650 542 800 55 2,047 1,200 3,336 $ 6,583 Sources (Uses) Sources (Uses) $ Net Income Depreciation Change in Accounts Receivable Change in Inventory Change in Other Assets Change in Accounts Payable Change in Accrued Liabilities Change in Other Current Liab Cash Flow from Operations 420 500 (234) 189 (11) 273 (56) 68 1,149 (425) Estimate (550) 50 Capital Expenditures Change in Short-Term Debt Change in Long-Term Debt Dividends Cash From (Used for) Fin Estimate Estimate 60% Dividend Payout (650) 200 50 (215) (115) Change in Cash $ 609 * Year 1 Interest Expense is calculated as 6% (the interest expense rate) times the sum of Year 0 STD and Year 0 LTD balances, offset by 2% (the interest income rate) times the Year 0 cash balance. Given the following set of assumptions, complete the valuation analysis below. Year 0 Year 1 Year 2 Year 3 Year 4 Units of Products Sold 6,500 Growth in Units 30.0% 20.0% -10.0% Selling Price $ $ 30.00 $ 32.00 $ 32.00 $ 25.00 Cost of Goods Sold (% Sales) 62.0% 60.0% 60.0% 58.0% Marketing Expense (% Sales) 30.0% 20.0% 20.0% 15.0% Administrative Expense $ 250 $ 200 $ 175 $ 150 (150) $ (100) Working Capital Investment $ (200) $ Capital Equipment Investment $ (8,000) Salvage Value Tax Rate 40.0% WACC 14.0% $ (400) Assume: (1) straight-line depreciation to zero and (2) any taxable losses can be immediately used to offset taxable income somewhere else in the company. Complete the capital project evaluation using the following worksheet and answer the questions. Complete the capital project evaluation using the following worksheet and answer the questions. Year 0 Year 1 Year 2 Year 3 Year 4 Sales Cost of Goods Sold Marketing Expense Administrative Expense Depreciation Pre-tax Inc Taxes After Tax Operating Income After Tax Operating Income Depreciation Working Capital Investment Capital Equipment Investment After Tax Salvage Value Cash Flow Net Present Value Internal Rate of Return You have estimated the following free cash flows for an copmpany that you are targeting for acquistion. Given the noted FCFs, a cost or capital of 9.75%, and an expected residual growth rate of 3.5%, what is the Enterprise Value of this target? What is the present value of the explicit FCFs? 2021 2022 2023 2024 55.6 $ 68.2 $ 88.1 $ 105.0 Free cash flow Residual value Total cash flow PV the of the free cash flow Enterprise Value Problem 3 Part B Given the Entedrprise Value above and the following infoprmation, what is the value of the equity in total and per share? $ Value of equity: Cash Cash Equivalents Accts Receivable Accts Payable ST Debt LT Debt 42.5 67.3 52.9 21.7 25.0 315.7 Value per share: Shares Outstanding 32.1 Project the 2021 plan year, based on the following: (Round to the nearest whole $$!) 2020 2021 Plan Whole $ Only Sales Cost of Goods Sold (ex. Dep) Depreciation (Dep) S, G, &A EBIT Net, Interest Expense Pre-Tax Income Taxes Net Income Projection Assumptions 15% Increase Same % of Sales Increase by $95 Same % of Sales $ 8.000 5,200 500 1,500 800 100 700 280 420 See Note Below 111 25.63% Tax Rate 36.5 Days Outstanding Sales 109.5 Days O/S COGS (ex. Dep) Cash Accounts Receivable Inventory Current Assets Net Plant, Property, and Equip Other Assets Total Assets $ 1,000 833 1,625 3,458 3,000 125 $ 6,583 Decrease by $15 Same Turnover - COGS (ex. Dep) 10% COGS (ex. Dep) Increase by $60 Accounts Payable Accrued Liabilities Short-Term Debt Other Current Liabilities Current Liabilities Long-Term Debt Stockholders' Equity Total Liabilities and Equity $ 650 542 800 55 2,047 1,200 3,336 $ 6,583 Sources (Uses) Sources (Uses) $ Net Income Depreciation Change in Accounts Receivable Change in Inventory Change in Other Assets Change in Accounts Payable Change in Accrued Liabilities Change in Other Current Liab Cash Flow from Operations 420 500 (234) 189 (11) 273 (56) 68 1,149 (425) Estimate (550) 50 Capital Expenditures Change in Short-Term Debt Change in Long-Term Debt Dividends Cash From (Used for) Fin Estimate Estimate 60% Dividend Payout (650) 200 50 (215) (115) Change in Cash $ 609 * Year 1 Interest Expense is calculated as 6% (the interest expense rate) times the sum of Year 0 STD and Year 0 LTD balances, offset by 2% (the interest income rate) times the Year 0 cash balance. Given the following set of assumptions, complete the valuation analysis below. Year 0 Year 1 Year 2 Year 3 Year 4 Units of Products Sold 6,500 Growth in Units 30.0% 20.0% -10.0% Selling Price $ $ 30.00 $ 32.00 $ 32.00 $ 25.00 Cost of Goods Sold (% Sales) 62.0% 60.0% 60.0% 58.0% Marketing Expense (% Sales) 30.0% 20.0% 20.0% 15.0% Administrative Expense $ 250 $ 200 $ 175 $ 150 (150) $ (100) Working Capital Investment $ (200) $ Capital Equipment Investment $ (8,000) Salvage Value Tax Rate 40.0% WACC 14.0% $ (400) Assume: (1) straight-line depreciation to zero and (2) any taxable losses can be immediately used to offset taxable income somewhere else in the company. Complete the capital project evaluation using the following worksheet and answer the questions. Complete the capital project evaluation using the following worksheet and answer the questions. Year 0 Year 1 Year 2 Year 3 Year 4 Sales Cost of Goods Sold Marketing Expense Administrative Expense Depreciation Pre-tax Inc Taxes After Tax Operating Income After Tax Operating Income Depreciation Working Capital Investment Capital Equipment Investment After Tax Salvage Value Cash Flow Net Present Value Internal Rate of Return You have estimated the following free cash flows for an copmpany that you are targeting for acquistion. Given the noted FCFs, a cost or capital of 9.75%, and an expected residual growth rate of 3.5%, what is the Enterprise Value of this target? What is the present value of the explicit FCFs? 2021 2022 2023 2024 55.6 $ 68.2 $ 88.1 $ 105.0 Free cash flow Residual value Total cash flow PV the of the free cash flow Enterprise Value Problem 3 Part B Given the Entedrprise Value above and the following infoprmation, what is the value of the equity in total and per share? $ Value of equity: Cash Cash Equivalents Accts Receivable Accts Payable ST Debt LT Debt 42.5 67.3 52.9 21.7 25.0 315.7 Value per share: Shares Outstanding 32.1
