Q1 a. Following are the details of Garnet Inc in Millions of $

Garnet Inc. 2013 2012

Income Statement

Net sales $930.0 $700.0

Costs (except depreciation) 400.0 380.0

Depreciation 30.0 25.0

Total operating costs 430.0 405.0

Earnings before interest and taxes (EBIT) 100.0 95.0

Less interest 23.0 21.0

Earnings before taxes 77.0 74.0

Taxes (30%) 23.1 22.2

Net income $ 53.9 $ 51.8

Balance Sheet

Assets

Cash $ 28.0 $ 27.0

Marketable securities 69.0 66.0

Accounts receivable 84.0 80.0

Inventories 112.0 106.0

Total current assets 293.0 279.0

Net plant and equipment 281.0 265.0

Total assets $574.0 $544.0

Liabilities and Equity

Accounts payable $ 56.0 $ 52.0

Notes payable 138.0 130.0

Total current liabilities 222.0 210.0

Long-term bonds 173.0 164.0

Preferred stock 100.0 100.0

Retained earnings 79.0 70.0

Common equity 179.0 170.0

Total liabilities and equity $574.0 $544.0

1. If the growth rate beyond 2013 is 5%. WACC is 12%. And number of shares is 100M

1. Calculate Free Cash flows.
2. Value of operations
3. Value of Company

iiii Market Value added