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Q7. (Please include answers in the template) (20) The Q7 template presents the balance sheet and value drivers of Yum Inc., a company that manufactures

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Q7. (Please include answers in the template) (20") The "Q7" template presents the balance sheet and value drivers of Yum Inc., a company that manufactures yogurt products. Suppose that the firm has $200k of selling, general, and administrative (SG&A) expenses each year, irrespective of the level of sales. The other parameters have been included in the template. Show the resulting income statements, balance sheets, the free cash flows (FCF), and the valuation (using both year-end discounting and mid-year discounting). Build a data table in which you show the sensitivity of the equity value to the level of SG&A. Let SG&A vary from $50k per year to $600k per year. Please plot the sensitivity of the equity value (mid-year discounting method) to the level of SG&A. (Additional model assumptions are included in the template.) Q7. (Please include answers in the template) (20") The "Q7" template presents the balance sheet and value drivers of Yum Inc., a company that manufactures yogurt products. Suppose that the firm has $200k of selling, general, and administrative (SG&A) expenses each year, irrespective of the level of sales. The other parameters have been included in the template. Show the resulting income statements, balance sheets, the free cash flows (FCF), and the valuation (using both year-end discounting and mid-year discounting). Build a data table in which you show the sensitivity of the equity value to the level of SG&A. Let SG&A vary from $50k per year to $600k per year. Please plot the sensitivity of the equity value (mid-year discounting method) to the level of SG&A. (Additional model assumptions are included in the template.)

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