Sooner is looking to acquire a distressed farm feed company based in Stillwater called Cowboy. Sooner is a profitable corporate conglomerate with strong free cash flow and the ability to pay cash to fund the acquisition. President Sooner has asked you to evaluate the potential acquisition, and ultimately make a recommendation about whether Sooner should purchase Cowboy and if so, for what price. From your analysis and evaluation of Cowboy's financial statements, you put together the following table of sales forecasts (numbers in millions):

You also gathered the following market information:

Further analysis led you to determine the following information on Cowboy:

Complete an APV valuation analysis for Cowboy using Excel (show all steps and formulas)

2018 2019 Net Sales COGS (75%) SG&A Interest Expense 34.50 25.88 2.25 2.61 2020 42.50 31.88 2.50 3.60 Risk Free Rate Market Risk Premium 2.4% 5.0% Pre-Merger Beta Pre-Merger % Debt Pre-Merger Debt Pre-Merger Debt Rd Tax Rate 1.75 35.0% $27.5 million 9.5% 35.0% 2018 2019 Net Sales COGS (75%) SG&A Interest Expense 34.50 25.88 2.25 2.61 2020 42.50 31.88 2.50 3.60 Risk Free Rate Market Risk Premium 2.4% 5.0% Pre-Merger Beta Pre-Merger % Debt Pre-Merger Debt Pre-Merger Debt Rd Tax Rate 1.75 35.0% $27.5 million 9.5% 35.0%