Using the financial statements templates for the Cutting Edge B$2$B Corporation, please construct

pro forma balance sheets, income statements, and free cash flows for each year $2016-2019.$ Then

find the value of the firm as of the end of $2015.$ Make a new version of your base model for each

of the assignments below. For the first two scenarios below assume the following:

COG$\frac{S}{?}$ Sales $=60\%$ each year, per a new plan to reduce costs

No new common stock will be issued

Annual sales growth rate $19\mathrm{.}54\%$ for each year

Interest rate on notes payable debt $=8\mathrm{.}3\%$

Interest rate on long$-$term debt $=7\mathrm{.}1\%$

Total interest expense is the sum of the $2-$year average interest expense for both

notes payable and long$-$term debt

Notes payable is constant at the $2015$ level

Growth rate in FCF after $2019=5\%$

WACC$=18\%$

Common dividends will be $$45\mathrm{.}3$ million each year

Tax rate $=40\%$

Marketable securities are constant at the $2015$ level. They are also a non$-$operating

asset

Preferred stock, and preferred stock dividends, are constant at $2015$ levels

Include formulas to remove the possibility of negative debt on your pro forma

balance sheets.