i believe that you must use the assumptions to figure out the solution. if you can please provide the solution with the steps that you took to get to that answer thatll be greatly appreciated. thank you!!

Valuation: 1. What is Lady M's enterprise value i.e., the value of its business operations (Debt + Equity - Excess Cash)? Does it matter if one uses an EBITDA multiple or a perpetuity growth formula for a terminal value? 2. What do you think of Romaniszyn's and Tom's baseline assumptions? Are they realistic? 3. Do you think they should take the Chinese investors' offer? Why/why not? . . . Assumptions To Obtain 2014 FCF 2014 Sales: $11m COGS (21.8%), SGA (58%) and R&D same (0%) sales as 2013 CAPEX = 3% of Sales Depreciation 75% of CAPEX (From assumption of 100% of CAPEX in 2019, increasing by 5% from 2014) Change in NWC - 1.9%(Change in Sales) Historical 2013 2014 Operating Assumptions 81.3% 46.8% Sales Growth 21.8% 21.8% COGS (% of sales) 58.0% 58.0% SG&A (% of sales) 0.0% 0.0% R&D Exp. % of sales) Primary Expenditure Assumptions Capex (% of sales) Depreciation (% of CapEx) Tax Rate 35% 0.3% 75.0% Assumptions for next 5 years 2015 2016 2017 2018 2019 Operating Assumptions Sales Growth 40.0% 25.0% 20.0% 21.8% 57.0% 21.8% COGS (% of sales) SG&A (% of sales) R&D Exp. (% of sales) 21.8% 25.0% 21.8% 54.0% 56.0% 25.0% 21.8% 53.0% 0.1% 55.0% 0.1% 0.1% 0.1% 0.1% Primary Expenditure Assumptions CapEx (% of sales) 7.6% 0.3% 0.3% 0.3% 0.3% 90.0% 95.0% 100.0% Depreciation (% of 80.0% 85.0% CapEx) Change in Working 1.9% 1.9% Capital (% of A sales) After obtaining FCF, discount at WACC of 12% 1.9% 1.9% 1.9% What to do about terminal value: (ie. FCF after 2019) Two ways suggested: 1. FCF Perpetuity growing at 4% 2. EBITDA multiple of 12 . What is the enterprise value the PV of FCF till 2019 + PV (Terminal Value)? What fraction of the firm would you be willing to sell for S10million