modeling exercise

Instructions: 1 Build an Unlevered Free Cash Flow Model 2 Build out projections for 5 years 3 Calculate a Weighted Average Cost of Capital 4 Create a Discounted Cash-Flow Analysis 5 Provide Equity value and Enterprise Value for the Company 6 Valuation date is December 31, 2020 Financials: Use the financials below to project free cash flows. Assume you are an industry expert, create your own assumptions as needed. No need to consult factual references. For the model, make sure that cash is the "plug" that allows the model to balance. Income Statement Sales Cost of goods sold (excluding depreciation) SG&A expenses (excluding amortization) Depreciation Interest expense Interest (income) 2018 2019 2020 $3,176.6 $3,192.1 $3,336.8 2,160.1 2,202.5 2,235.7 635.3 606.5 667.4 79.7 87.5 91.6 38.5 35.4 30.0 23.8 19.0 25.0 Balance Sheet: 2019 2020 2018 $38.9 365.3 380.7 439.0 457.6 109.7 108.1 Cash Accounts receivable, net Inventories Other current assets PP&E, net Goodwill Other long-term assets Accounts payable Other current liabilities Short-term debt Long-term debt Other long-term liabilities 461.1 1.230.2 127.6 $266.1 489.8 1.2302 142.1 $298.7 403.4 368.7 477.6 100.8 488.0 1.230.2 144.7 $302.7 431.7 414.0 153.1 0.2 101.2 889.9 786.1 880.1 342.3 238.2 351.1 Total stockholders' equity 9297 Instructions: 1 Build an Unlevered Free Cash Flow Model 2 Build out projections for 5 years 3 Calculate a Weighted Average Cost of Capital 4 Create a Discounted Cash-Flow Analysis 5 Provide Equity value and Enterprise Value for the Company 6 Valuation date is December 31, 2020 Financials: Use the financials below to project free cash flows. Assume you are an industry expert, create your own assumptions as needed. No need to consult factual references. For the model, make sure that cash is the "plug" that allows the model to balance. Income Statement Sales Cost of goods sold (excluding depreciation) SG&A expenses (excluding amortization) Depreciation Interest expense Interest (income) 2018 2019 2020 $3,176.6 $3,192.1 $3,336.8 2,160.1 2,202.5 2,235.7 635.3 606.5 667.4 79.7 87.5 91.6 38.5 35.4 30.0 23.8 19.0 25.0 Balance Sheet: 2019 2020 2018 $38.9 365.3 380.7 439.0 457.6 109.7 108.1 Cash Accounts receivable, net Inventories Other current assets PP&E, net Goodwill Other long-term assets Accounts payable Other current liabilities Short-term debt Long-term debt Other long-term liabilities 461.1 1.230.2 127.6 $266.1 489.8 1.2302 142.1 $298.7 403.4 368.7 477.6 100.8 488.0 1.230.2 144.7 $302.7 431.7 414.0 153.1 0.2 101.2 889.9 786.1 880.1 342.3 238.2 351.1 Total stockholders' equity 9297