Using the financial statements on the last page of the exam, please calculate free cash flows for 2022. Show all steps. Total Free Cash Flow= Net Sales - Operating Costs (COGS, SGA, R&D) - Taxes - Changes in Working Capital - Required Capital Expenditures Using the attached horizontal ratios to forecast sales and vertical ratios to forecast other items, please complete a 2023 forecast by filling in empty cells below. State all assumptions and show work. Your boss has asked you to compute the WACC for long-term valuation of three businesses, businesses 1, 2 and 3. Business 1 is American, 2 is British, and 3 is Japanese. Assume a tax rate of 20%. Data Your boss asks that you use current yields to maturity for U.S. Treasury bonds for the risk free rate: 1-Year: 4.61% 10-Year: 3.61% 30-Year: 3.65% Compute the WACC for business 1. Do businesses 2 and 3 have riskier debt ( than business 1? How do you know? Are businesses 2 and 3 riskier in terms of than business 1? How do you know? Financial Statements Financial Ratios

10. Using the attached horizontal ratios to forecast sales and vertical ratios to forecast other items, please complete a 2023 forecast by filling in empty cells below. State all assumptions and show work. Financial Statements Income Statement (in \$ millions) Balance Sheet (in \$ millions) Financial Ratios