Part 2.

Chang Dental Clinic Valuation Dollar amounts in $1,000s

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0 1 2 3 4 5 6 7 8 9 10

S(1-t). 669.9 729.2 761.5 784.4. 807.9 832.1. 857.1 882.8 909.3 936.6

vS(1-t) -206.9 -225.2. -235.2 -242.2 -249.5 -257.0 -264.7 -272.6. -280.8 -289.2

F(1-t). -265.4 -273.3. -281.5. -290.0. -298. -307.6. -316.9. -326.4. -336.2. -346.3

Dt. 3.5 3.6 3.7. 3.9. 4.0 4.1. 4.2. 4.3. 4.5. 4.6

Dwc. -4.4. -2.4 -1.7 -1.7 -1.8 -1.9. -1.9. -2.0 -2.0. -2.1

C [replacement]. -11.8. -12.1. -12.5. -12.9. -13.2. -13.6. -14.1. -14.5 -14.9. -15.4

C [expansion] -1.9. -1.0 0.7 -0.7. -0.8. - 0.8 -0.8 -0.8 -0.9 -0.9

Continuing Value 2,466.6

===. === === === === ===. ====. ===. ===. ===. ====

Net result oper CF.0. 0 183.1. 218.8 233.7. 240.7. 247.9 255.3 263.0. 270.9. 279.0. 2754.0

PV factor @15.00% 1.000. 0.870. 0.756 0.658 0.572. 0.497 0.432.0.376. 0.327. 0.284. 0.247

PVs. 0.0. 159.3 165.4. 153.6 137.6 123.2 110.4. 98.9. 88.5 79.3 680.7

Value 1797.0

Debt. 0.0

Leases. 387.0.

Equity 1410.0

t 0.30

v. 0.309

F 368.1 Creplace. 11.4

w 0.052

c. 0.0219.

GROWTH 0.177. 0.089. 0.044. 0.03. 0.03. 0.03. 0.03 0.030 0.03. 0.03. 0.03. INFLATOR. 0.030. 0 .030. 0.030 0.03. 0.030. 0.030. 0.030. 0.030 0.030. 0.030 0.030

SALES. 813.0 957.0 1041.8 1087.9 1120.5 1154.2 1188.8 1224.4. 1261.2 1299.0 1338.0

Base_Case: Buyer's Assumptions; tradtional analysis

[1] use 10 years on basis of loan life and equipment life

[2] half of previous year's growth rate until normalization

[3] historical cost of Associates

Service of Financing

Beginning debt. 320.0 288.0 256.0. 224.0. 192.0 160.0. 128.0 96.0. 64.0 32.0 0.0

Interest payments 19.2 17.3 15.4 13.4. 11.5 9.6 7.7. 5.8 3.8. 1.9

Principal payments. 32.0. 32.0 32.0. 32.0. 32.0. 32.0. 32.0. 32.0 32.0 32.0

Other bank charges. 0.5. 0.5 0.5. 0.5 0.5. 0.5. 0.5 0.5. 0.5. 0.5

Lease payments 52.6. 54.2. 55.8 57.5. 59.2. 61.0. 62.8 64.7. 66.6 68.6

Total service. 103.8 103.4. 103.1. 102.9 102.7 102.6 102.5. 102.4. 102.5 102.5

Tax shields 21.5. 21.4. 21.3. 21.3. 21.2 21.2 21.1. 21.1. . 21.1. 21.2

Operatingcas flow183.1. 218.8 233.7. 240.7. 247.9. 255.3. 263.0. 270.9 279.0 287.4

N.B. This is I Project, I post it in 2 parts.