please calculate the following question based on the income statement below discount rate 1 1 Estimate increases in fixed assets , which generally represent increases in land, property, and equipment before subtracting depreciation (i e , the gross increases in fixed assets) 2 Estimate Terminal Value , i e , the value of the firm beyond the 3 or 5 year period, discounted back to t 0 Use the Growing Perpetuity model or Gordon Model 3 Add Cash to and Subtract Debt from the total enterprise value in (2) to find the firms expected equity value Fiscal year is January December All values USD millions 2011 2012 2013 2014 2015 Sales Revenue 48 08B 61 09B 74 45B 88 99B 107 01B Cost of Goods Sold (COGS) incl D A 37 29B 45 97B 54 18B 62 75B 71 65B COGS excluding D A 36 44B 44 14B 51 38B 58 57B 66 01B Depreciation Amortization Expense 847M 1 83B 2 8B 4 19B 5 65B Depreciation 698M 1 67B 2 63B 4 01B Amortization of Intangibles 149M 163M 168M 181M Gross Income 10 79B 15 12B 20 27B 26 24B 35 36B 2011 2012 2013 2014 2015 SG A Expense 9 77B 14 29B 19 41B 25 93B 32 95B Research Development 2 91B 4 56B 6 57B 9 28B 12 54B Other SG A 6 86B 9 72B 12 85B 16 65B 20 41B Other Operating Expense Unusual Expense EBIT after Unusual Expense Non Operating Income Expense (78M) (239M) (250M) (251M) (427M) Non Operating Interest Income 61M 40M 38M 39M 50M Equity in Affiliates (Pretax) Interest Expense 65M 92M 141M 210M 459M Gross Interest Expense 65M 92M 141M 210M 459M Interest Capitalized Pretax Income 934M 544M 506M (111M) 1 57B Income Tax 291M 428M 161M 167M 950M Income Tax Current Domestic 103M 562M 144M 279M 452M Income Tax Current Foreign 52M 131M 173M 204M 417M Income Tax Deferred Domestic 157M (156M) (133M) (136M) 302M Income Tax Deferred Foreign (21M) (109M) (23M) (180M) (221M) Income Tax Credits Equity in Affiliates (12M) (155M) (71M) 37M (22M) Other After Tax Income (Expense) Consolidated Net Income 631M (39M) 274M (241M) 596M Minority Interest Expense Net Income 631M (39M) 274M (241M) 596M Extraordinaries Discontinued Operations Extra Items Gain Loss Sale Of Assets Cumulative Effect Accounting Chg Discontinued Operations Net Income After Extraordinaries 631M (39M) 274M (241M) 596M Preferred Dividends Net Income Available to Common 631M (39M) 274M (241M) 596M EPS (Basic) 1 39 0 09 0 6 0 52 1 28 Basic Shares Outstanding 453M 453M 457M 462M 467M EPS (Diluted) 1 37 0 09 0 59 0 52 1 25 Diluted Shares Outstanding 461M 453M 465M 462M 477M EBITDA 1 86B 2 67B 3 66B 4 5B 8 05B Balance sheet Assets Fiscal year is January December All values USD millions 2011 2012 2013 2014 2015 Cash Short Term Investments 9 58B 11 45B 12 45B 17 42B 19 81B Cash Only 5 27B 8 08B 8 66B 14 56B 15 89B Short Term Investments 4 31B 3 36B 3 79B 2 86B 3 92B Total Accounts Receivable 2 57B 3 36B 4 77B 5 61B 6 42B Accounts Receivables, Net 2 57B 2 6B 3B 3 3B 4 4B Accounts Receivables, Gross 2 65B 2 72B 3 15B 3 49B 4 59B Bad Debt Doubtful Accounts (82M) (116M) (153M) (190M) (189M) Other Receivables 764M 1 77B 2 31B 2 02B Inventories 4 99B 6 03B 7 41B 8 3B 10 24B Finished Goods 6 03B 7 41B 8 3B 10 24B Work in Progress Raw Materials Progress Payments Other 4 99B Other Current Assets 351M 453M Miscellaneous Current Assets 351M 453M Total Current Assets 17 49B 21 3B 24 63B 31 33B 36 47B 2011 2012 2013 2014 2015 Net Property, Plant Equipment 4 42B 7 06B 10 95B 16 97B 21 84B Property, Plant Equipment Gross 5 79B 9 58B 14 81B 22 73B 30 05B Buildings 2 97B 4 58B 7 15B 9 77B Land Improvements Computer Software and Equipment 3 22B 866M 1 1B 1 3B 1 4B Other Property, Plant Equipment 2 46B 174M 231M 304M 334M Accumulated Depreciation 1 37B 2 52B 3 86B 5 76B 8 22B Total Investments and Advances 364M 151M 520M 886M 698M Other Long Term Investments 156M 99M 482M 811M 698M Long Term Note Receivable Intangible Assets 2 6B 3 28B 3 3B 4 08B 4 52B Net Goodwill 1 96B 2 55B 2 66B 3 32B 3 76B Net Other Intangibles 647M 725M 645M 764M 762M Other Assets 377M 648M 538M 971M 1 83B Tangible Other Assets 377M 648M 538M 971M 1 83B Total Assets 25 28B 32 56B 41 4B 56 34B 67 71B Liabilities Shareholders' Equity 2011 2012 2013 2014 2015 ST Debt Current Portion LT Debt 524M 1 14B 1 74B 3 6B 3 36B Short Term Debt Current Portion of Long Term Debt 524M 1 14B 1 74B 3 6B 3 36B Accounts Payable 11 15B 13 32B 15 13B 16 46B 20 4B Income Tax Payable Other Current Liabilities 3 23B 4 55B 6 11B 8 03B 10 14B Dividends Payable Accrued Payroll Miscellaneous Current Liabilities 3 23B 4 55B 6 11B 8 03B 10 14B Total Current Liabilities 14 9B 19B 22 98B 28 09B 33 9B Long Term Debt 1 42B 3 83B 5 18B 12 49B 14 18B Long Term Debt excl Capitalized Leases 255M 3 08B 3 19B 8 27B 8 24B Non Convertible Debt 255M 3 08B 3 19B 8 27B 8 24B Convertible Debt Capitalized Lease Obligations 1 16B 746M 1 99B 4 22B 5 95B Provision for Risks Charges 266M 336M 457M 510M 932M Deferred Taxes (28M) (123M) 344M 750M 1B Deferred Taxes Credit 1 81B 2 86B 3 35B Deferred Taxes Debit 28M 123M 1 47B 2 11B 2 34B Other Liabilities 944M 1 2B 1 22B 1 66B 1 96B Other Liabilities (excl Deferred Income) 944M 1 09B 1 22B 1 66B 1 96B Deferred Income 108M Total Liabilities 17 52B 24 36B 31 65B 45 6B 54 32B Non Equity Reserves Preferred Stock (Carrying Value) Redeemable Preferred Stock Non Redeemable Preferred Stock Common Equity (Total) 7 76B 8 19B 9 75B 10 74B 13 38B Common Stock Par Carry Value 5M 5M 5M 5M 5M Retained Earnings 1 96B 1 92B 2 19B 1 95B 2 55B ESOP Debt Guarantee Cumulative Translation Adjustment Unrealized For Exch Gain (326M) (250M) (187M) (512M) (722M) Unrealized Gain Loss Marketable Securities 10M 11M 2M 1M (1M) Revaluation Reserves Treasury Stock (877M) (1 84B) (1 84B) (1 84B) (1 84B) Total Shareholders' Equity 7 76B 8 19B 9 75B 10 74B 13 38B Accumulated Minority Interest Total Equity 7 76B 8 19B 9 75B 10 74B 13 38B Liabilities Shareholders' Equity 25 28B 32 56B 41 4B 56 34B 67 71B

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please calculate the following question based on the income statement below. discount rate=1 1. Estimate increases in fixed assets , which generally represent increases in

please calculate the following question based on the income statement below.

discount rate=1

1. Estimate increases in fixed assets, which generally represent increases in land, property, and equipment before subtracting depreciation (i.e., the gross increases in fixed assets)

2. Estimate Terminal Value, i.e., the value of the firm beyond the 3- or 5-year period, discounted back to t=0. Use the Growing Perpetuity model or Gordon Model.

3. Add Cash to and Subtract Debt from the total enterprise value in (2) to find the firms expected equity value.

Fiscal year is January-December. All values USD millions.	2011	2012	2013	2014	2015
Sales/Revenue	48.08B	61.09B	74.45B	88.99B	107.01B
Cost of Goods Sold (COGS) incl. D&A	37.29B	45.97B	54.18B	62.75B	71.65B
COGS excluding D&A	36.44B	44.14B	51.38B	58.57B	66.01B
Depreciation & Amortization Expense	847M	1.83B	2.8B	4.19B	5.65B
Depreciation	698M	1.67B	2.63B	4.01B	-
Amortization of Intangibles	149M	163M	168M	181M	-
Gross Income	10.79B	15.12B	20.27B	26.24B	35.36B
	2011	2012	2013	2014	2015
SG&A Expense	9.77B	14.29B	19.41B	25.93B	32.95B
Research & Development	2.91B	4.56B	6.57B	9.28B	12.54B
Other SG&A	6.86B	9.72B	12.85B	16.65B	20.41B
Other Operating Expense	-	-	-	-	-
Unusual Expense	-	-	-	-	-
EBIT after Unusual Expense	-	-	-	-	-
Non Operating Income/Expense	(78M)	(239M)	(250M)	(251M)	(427M)
Non-Operating Interest Income	61M	40M	38M	39M	50M
Equity in Affiliates (Pretax)	-	-	-	-	-
Interest Expense	65M	92M	141M	210M	459M
Gross Interest Expense	65M	92M	141M	210M	459M
Interest Capitalized	-	-	-	-	-
Pretax Income	934M	544M	506M	(111M)	1.57B
Income Tax	291M	428M	161M	167M	950M
Income Tax - Current Domestic	103M	562M	144M	279M	452M
Income Tax - Current Foreign	52M	131M	173M	204M	417M
Income Tax - Deferred Domestic	157M	(156M)	(133M)	(136M)	302M
Income Tax - Deferred Foreign	(21M)	(109M)	(23M)	(180M)	(221M)
Income Tax Credits	-	-	-	-	-
Equity in Affiliates	(12M)	(155M)	(71M)	37M	(22M)
Other After Tax Income (Expense)	-	-	-	-	-
Consolidated Net Income	631M	(39M)	274M	(241M)	596M
Minority Interest Expense	-	-	-	-	-
Net Income	631M	(39M)	274M	(241M)	596M
Extraordinaries & Discontinued Operations	-	-	-	-	-
Extra Items & Gain/Loss Sale Of Assets	-	-	-	-	-
Cumulative Effect - Accounting Chg	-	-	-	-	-
Discontinued Operations	-	-	-	-	-
Net Income After Extraordinaries	631M	(39M)	274M	(241M)	596M
Preferred Dividends	-	-	-	-	-
Net Income Available to Common	631M	(39M)	274M	(241M)	596M
EPS (Basic)	1.39	-0.09	0.6	-0.52	1.28
Basic Shares Outstanding	453M	453M	457M	462M	467M
EPS (Diluted)	1.37	-0.09	0.59	-0.52	1.25
Diluted Shares Outstanding	461M	453M	465M	462M	477M
EBITDA	1.86B	2.67B	3.66B	4.5B	8.05B

Balance sheet

Assets
Fiscal year is January-December. All values USD millions.	2011	2012	2013	2014	2015
Cash & Short Term Investments	9.58B	11.45B	12.45B	17.42B	19.81B
Cash Only	5.27B	8.08B	8.66B	14.56B	15.89B
Short-Term Investments	4.31B	3.36B	3.79B	2.86B	3.92B
Total Accounts Receivable	2.57B	3.36B	4.77B	5.61B	6.42B
Accounts Receivables, Net	2.57B	2.6B	3B	3.3B	4.4B
Accounts Receivables, Gross	2.65B	2.72B	3.15B	3.49B	4.59B
Bad Debt/Doubtful Accounts	(82M)	(116M)	(153M)	(190M)	(189M)
Other Receivables	-	764M	1.77B	2.31B	2.02B
Inventories	4.99B	6.03B	7.41B	8.3B	10.24B
Finished Goods	-	6.03B	7.41B	8.3B	10.24B
Work in Progress	-	-	-	-	-
Raw Materials	-	-	-	-	-
Progress Payments & Other	4.99B	-	-	-	-
Other Current Assets	351M	453M	-	-	-
Miscellaneous Current Assets	351M	453M	-	-	-
Total Current Assets	17.49B	21.3B	24.63B	31.33B	36.47B
	2011	2012	2013	2014	2015
Net Property, Plant & Equipment	4.42B	7.06B	10.95B	16.97B	21.84B
Property, Plant & Equipment - Gross	5.79B	9.58B	14.81B	22.73B	30.05B
Buildings	-	2.97B	4.58B	7.15B	9.77B
Land & Improvements	-	-	-	-	-
Computer Software and Equipment	3.22B	866M	1.1B	1.3B	1.4B
Other Property, Plant & Equipment	2.46B	174M	231M	304M	334M
Accumulated Depreciation	1.37B	2.52B	3.86B	5.76B	8.22B
Total Investments and Advances	364M	151M	520M	886M	698M
Other Long-Term Investments	156M	99M	482M	811M	698M
Long-Term Note Receivable	-	-	-	-	-
Intangible Assets	2.6B	3.28B	3.3B	4.08B	4.52B
Net Goodwill	1.96B	2.55B	2.66B	3.32B	3.76B
Net Other Intangibles	647M	725M	645M	764M	762M
Other Assets	377M	648M	538M	971M	1.83B
Tangible Other Assets	377M	648M	538M	971M	1.83B
Total Assets	25.28B	32.56B	41.4B	56.34B	67.71B
Liabilities & Shareholders' Equity
	2011	2012	2013	2014	2015
ST Debt & Current Portion LT Debt	524M	1.14B	1.74B	3.6B	3.36B
Short Term Debt	-	-	-	-	-
Current Portion of Long Term Debt	524M	1.14B	1.74B	3.6B	3.36B
Accounts Payable	11.15B	13.32B	15.13B	16.46B	20.4B
Income Tax Payable	-	-	-	-	-
Other Current Liabilities	3.23B	4.55B	6.11B	8.03B	10.14B
Dividends Payable	-	-	-	-	-
Accrued Payroll	-	-	-	-	-
Miscellaneous Current Liabilities	3.23B	4.55B	6.11B	8.03B	10.14B
Total Current Liabilities	14.9B	19B	22.98B	28.09B	33.9B
Long-Term Debt	1.42B	3.83B	5.18B	12.49B	14.18B
Long-Term Debt excl. Capitalized Leases	255M	3.08B	3.19B	8.27B	8.24B
Non-Convertible Debt	255M	3.08B	3.19B	8.27B	8.24B
Convertible Debt	-	-	-	-	-
Capitalized Lease Obligations	1.16B	746M	1.99B	4.22B	5.95B
Provision for Risks & Charges	266M	336M	457M	510M	932M
Deferred Taxes	(28M)	(123M)	344M	750M	1B
Deferred Taxes - Credit	-	-	1.81B	2.86B	3.35B
Deferred Taxes - Debit	28M	123M	1.47B	2.11B	2.34B
Other Liabilities	944M	1.2B	1.22B	1.66B	1.96B
Other Liabilities (excl. Deferred Income)	944M	1.09B	1.22B	1.66B	1.96B
Deferred Income	-	108M	-	-	-
Total Liabilities	17.52B	24.36B	31.65B	45.6B	54.32B
Non-Equity Reserves	-	-	-	-	-
Preferred Stock (Carrying Value)	-	-	-	-	-
Redeemable Preferred Stock	-	-	-	-	-
Non-Redeemable Preferred Stock	-	-	-	-	-
Common Equity (Total)	7.76B	8.19B	9.75B	10.74B	13.38B
Common Stock Par/Carry Value	5M	5M	5M	5M	5M
Retained Earnings	1.96B	1.92B	2.19B	1.95B	2.55B
ESOP Debt Guarantee	-	-	-	-	-
Cumulative Translation Adjustment/Unrealized For. Exch. Gain	(326M)	(250M)	(187M)	(512M)	(722M)
Unrealized Gain/Loss Marketable Securities	10M	11M	2M	1M	(1M)
Revaluation Reserves	-	-	-	-	-
Treasury Stock	(877M)	(1.84B)	(1.84B)	(1.84B)	(1.84B)
Total Shareholders' Equity	7.76B	8.19B	9.75B	10.74B	13.38B
Accumulated Minority Interest	-	-	-	-	-
Total Equity	7.76B	8.19B	9.75B	10.74B	13.38B
Liabilities & Shareholders' Equity	25.28B	32.56B	41.4B	56.34B	67.71B