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Prepare the WC Schedule and calculate the change in WC on YoY basis for the forecasted years, as per the information given in this exhibit.

Also compute the value of the firm using the information given in the Exhibit ( hint: you don't need to substract interest from EBITDA (FCF= EBITDA*(1-T) + Dep-WC - CapEx)

A B D 1 Exhibit 8. Projected Operating Performance of Seagate Disk Drive Business 2 3 Year Ending June 30, 4 2002 2003 2001 2004 2005 2000 2006 5 6 7 Base Case ($ Million) 8 $6,619 $7,417 $8,564 99 504 9 Revenues $10,416 $11,359 $12,350 10 1,264 1,409 11 Gross Margin 1,696 2,043 2,312 2,624 3,026 12 13 EBITA 141 189 316 449 499 614 724 14 15 Depreciation 625 626 642 666 708 726 729 16 17 Capital Expenditures 627 690 720 795 700 725 750 18 19 20 Upside Case ($ Million) 21 22 Revenues $6,619 $8,185 $10,146 $11,283 $12,626 $13,961 $15,404 23 24 EBITA 141 365 689 783 867 1,000 1,167 25 26 27 Downside Case ($ Million) 28 29 Revenues $6,619 $7,393 $7,797 $8,310 30 $8,801 $9,269 $9,759 31 EBITA 141 189 322 32 363 378 403 407 33 Source: Casewriters' estimates based on revenues and EBITA projections contained in SEC filings and casewriter 34 The "downside case" is identical to the "buyer case" contained in the SEC filings. 35 36 37 A B D 1 Exhibit 8. Projected Operating Performance of Seagate Disk Drive Business 2 3 Year Ending June 30, 4 2002 2003 2001 2004 2005 2000 2006 5 6 7 Base Case ($ Million) 8 $6,619 $7,417 $8,564 99 504 9 Revenues $10,416 $11,359 $12,350 10 1,264 1,409 11 Gross Margin 1,696 2,043 2,312 2,624 3,026 12 13 EBITA 141 189 316 449 499 614 724 14 15 Depreciation 625 626 642 666 708 726 729 16 17 Capital Expenditures 627 690 720 795 700 725 750 18 19 20 Upside Case ($ Million) 21 22 Revenues $6,619 $8,185 $10,146 $11,283 $12,626 $13,961 $15,404 23 24 EBITA 141 365 689 783 867 1,000 1,167 25 26 27 Downside Case ($ Million) 28 29 Revenues $6,619 $7,393 $7,797 $8,310 30 $8,801 $9,269 $9,759 31 EBITA 141 189 322 32 363 378 403 407 33 Source: Casewriters' estimates based on revenues and EBITA projections contained in SEC filings and casewriter 34 The "downside case" is identical to the "buyer case" contained in the SEC filings. 35 36 37