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Is there any way you can show work Men's Athletic: Revenue Less: Operating Expenses* Operating Income 2007 2008 2009 2010 2011 251,957 282,192 310,411 335,244

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Men's Athletic: Revenue Less: Operating Expenses* Operating Income 2007 2008 2009 2010 2011 251,957 282,192 310,411 335,244 352,006 218,435 244,647 269,112 290,641 305,173 33,522 37,545 41,299 44,603 46,834 Men's Casual: Revenue Less: Operating Expenses* Operating Income 52,179 43,834 8,345 53,223 44,711 8,512 54,287 45,605 8,682 55,916 46,973 8,943 57,594 48,382 9,211 Women's Athletic: Revenue Less: Operating Expenses* Operating Income 138,390 153,613 167,438 179,159 188,117 124,302 137,976 150,393 160,921 168,967 14,088 15,638 17,045 18,238 19,150 0 0 0 Women's Casual Revenue Less: Operating Expenses* Operating Income 36,802 37,265 (463) 0 0 0 0 0 0 0 0 0 Consolidated Revenue Less: Operating Expenses* Less: Corporate Overhead Consolidated Operating Income 479,329 489,028 532,137 570,319 597,717 423,836 427,333 465,110 498,535 522,522 8,487 8,659 9,422 10,098 10,583 47,006 53,036 57,605 61,686 64,612 Estimated Capital Expenditures Estimated Depreciation 11,983 9,587 12,226 9,781 13,303 10,643 14,258 11,406 14,943 11,954 * * Operating Expenses include an allocation of depreciation for each segment. h. What will be Mercury's free cash flows for years 2007 to 2011? i. Liedtke's projections stop in 2011, but Mercury athletic will continue to earn cash flows after 2011. Suppose Mercury reaches a steady state in 2011 so that free cash flows grow at a constant rate after 2011 in perpetuity. If this growth rate is 3%, what will be Mercury's free cash flow in 2012? j. What is the value, in 2011-dollars, of all Mercury's free cash flows from 2012 into perpetuity? Assume Mercury has a discount rate of 15%. k. Again assuming a discount rate of 15%, how much should Liedtke be willing to pay for Mercury's operations? That is, what is Mercury's enterprise value

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