Please find attached. Thank you for your assistance.

SVA EXERCISE Given: ($ '000) Base sales: $250,000 Base year Fade rate Yr. 10 and after Note: Fade rate is the year-to-year reduction in the rate to some steady state rate 10 Sales growth: 1.15 0.01 1.05 Year 1 = 1.14, year 2 = 1.13, etc. 11 Operating PM 0.20 0.01 0.1 12 Fixed capital inv rate 0.15 Note: on a per $ of sales basis 13 WC inv rate 0.09 Note: on a per $ of sales basis 14 Cash tax rate 0.38 15 COC 0.11 16 Market securities $20,000 17 Debt $50,000 18 # shares outstanding 5,000,000 19 20 (all dollars in thousands) 21 Year1 Year 2 Year 3 Year 4 Year 5 22 Sales Year 6 Year 7 Year 8 Year 9 Year 10 $285,000.00 Residual $0.00 $0.00 $0.00 $0.00 23 Operating Profit $0.00 $0.00 $0.00 $0.00 $54,150.00 $0.00 $0.00 $0.00 $0.00 24 NOPAT $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $33,573.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 25 New Investment $0.00 $5,250.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 26 Add'l WC $0.00 $0.00 $3,150.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 27 Free cash flow $0.00 $0.00 $25,173.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 28 PV to year 10 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 29 Pv after year 10 30 31 32 1. Value years 1-10 33 2. Value after year 10 34 35 Market securities 36 Total Value 37 38 Less debt 39 40 3. Value of equity 41 42 4. Value of equity/share 43