The following information is provided for Gamma Industries Plc (amounts are in millions): 2021 2022 Sales 8540 9163 Operating costs, ex-Depreciation & Amortisation (4062) (4860) EBITDA 4478 4303 Depreciation & Amortisation (623) (418) EBIT 3855 3885 Interest (163) (143) Pre-tax profit 3692 3742 Tax (30%) (1108) (1123) Net Income 2584 2619 Change in accounts receivable 310 Investment in Inventory 121 34 Increase (Decrease) in accounts payable 30 (25) Capital expenditure 987 700 Assume corporate taxes are 30%, deferred taxes and any other non-cash asset accounts are zero. a) Calculate unlevered free cash flow for 2021 and 2022. (4 marks) b) Comment briefly on why the free cash flow drops in 2022. (4 marks) c) At Gamma Industries' results meeting, the company discloses that the Depreciation & Amortisation charge of 418m excludes 100m of capitalised R&D. Estimate Free Cash Flow (FCF) for 2022 taking this into account. (4 marks) d) The following information is provided for Golden Age PLC (amounts are in millions): WC EBIT Net income Depreciation investment 2020 7,408 3,830 876 1,807 -187 2021 8,305 4,563 1,080 1,706 468 2022 7,830 4,184 982 1,981 386 Assuming Golden Age finances 60% of its net investment with debt issues and that maturing debt is simply refinanced on the same terms, calculate the firm's equity free cash flow in 2020, 2021 and 2022. (4 marks) e) A manufacturing company, Silver Moon, has a market capitalisation of 3,250m and 750m of net debt. Consensus forecasts are that the company will generate 250m of NOPAT this year. Silver Moon's cost of equity is 8% and its after tax cost of debt is 3.0%. What percentage of Silver Moon's Enterprise Value (EV) can be attributed to the firm's growth opportunities using a capitalised NOPAT 'anchor'? (4 marks) 1) You are separately given a segment of an analyst's value-driver analysis of Singalong Inc. Assuming no change in returns from existing assets, calculate the analysts' forecast NOPAT in 2025, with 2023 being the first forecast year. (5 marks) All figures are YE 31 Dec Reinvestment Rate IROIC % NOPAT, Sm 2021A 2022 30% 2023 2024 2025E 25% 20% 15% 40% 20% 14% 11% 12% 207.6 220.1