Valuation Part 2; FCF Method Go to the Valuation Readings folder located under Course Documents and open this reading: Free_Cash_Flow_Method_Files.pdf . Then go to Exhibit 1 (p. 244; page #s are at the bottom of each page) of that reading and do the followings:Locate 408.3 under the 6% column in panel B of Exhibit 1 (p. 244; page #s are at the bottom of each page). In the notes given to you over the past week, I showed you how that figure was arrived at. You also were given homework to go to the same 6% column and show how the following numbers had been calculated: a. 241.0; b. 161.1; c. 67.5; and d. 26.3. Now, in this WA your task is to go to the 5% column in the same panel and show how the following numbers were calculated: a. 350.4 b. 221.1 c. 152.8, and d. 111.8.

Show work please.

Terminal Years (Year 11 on): Years 1-5: Initial Sales Years 6-10: 2 15.0% 10.0% 50.0% Terni na Terminal Terminal Growth Rate EBIAT/S (FA+WC)/S EBIAT/S Growth EBIAT/ FAWC/ Year Sales Rate Sales Sales EBIAT FA WC FA WC FCF EBIAT 20.0% 10.0% 50.0% 12.0 60.0 20.0% 10.0% 50.0% 14.4 20.0% 10.0% 50.0% 17.3 86.4 4 207.4 20.0% 10.0% 50.0% 20.7 103.7 17.3 6 286.2 15.0% 10.0% 50.0% 28.6 143.1 18.7 10.0 24.8 34.8% 8 378.4 15.0% 10.0% 50.0% 37.8 189.2 24.7 13.2 20.0% 10.0% 50.0% 24.9 124.4 20.7 15.0% 10.0% 50.0% 43.5 217.6 10 500.5 15.0% 10.0% 50.0% 50.0 250.2 32.6 17.4 82.0 34 6.0% 10.0% 50.0% 53.1 265.3 15.0 30.0 120.0 71.7% Total Present Value of Free Cash Flows Terminal Growth Rate 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 10.0% 234.6 247.5 263.6 284.2 311.8 350.4 408.3 504.8 697.7 12.0% 171.2 177.5 185.2 194.5 206.1 221.1 241.0 268.9 310.8 14.0% 129.3 132.5 136.3 140.8 146.2 152.8 161.1 171.7 185.8 16.0% 100.2 101.9 103.9 106.1 108.7 111.8 115.5 120.1 125.7 18.0% 79.4 80.3 81.3 82.4 83.7 85.1 86.9 88.9 91.3 20.0% 64.1 64.5 65.0 65.5 66.1 66.3 67.5 68.4 69.5 22.0% 52.5 52.7 52.9 53.1 53.4 53.6 53.9 54.3 54.7 30.0% 26.9 EBIAT Earnings Before Interest, But After Taxes FA = Net Fixed Assets WCOperating Working Capital FCFTotal Free Cash FlowEBIAT (Change in FA and WC) Total Present Value Present Value of FCF Present Value of Terminal Value Terminal Value FCF in year 11 divided by (Discount Rate Terminal Growth Rate) Terminal Years (Year 11 on): Years 1-5: Initial Sales Years 6-10: 2 15.0% 10.0% 50.0% Terni na Terminal Terminal Growth Rate EBIAT/S (FA+WC)/S EBIAT/S Growth EBIAT/ FAWC/ Year Sales Rate Sales Sales EBIAT FA WC FA WC FCF EBIAT 20.0% 10.0% 50.0% 12.0 60.0 20.0% 10.0% 50.0% 14.4 20.0% 10.0% 50.0% 17.3 86.4 4 207.4 20.0% 10.0% 50.0% 20.7 103.7 17.3 6 286.2 15.0% 10.0% 50.0% 28.6 143.1 18.7 10.0 24.8 34.8% 8 378.4 15.0% 10.0% 50.0% 37.8 189.2 24.7 13.2 20.0% 10.0% 50.0% 24.9 124.4 20.7 15.0% 10.0% 50.0% 43.5 217.6 10 500.5 15.0% 10.0% 50.0% 50.0 250.2 32.6 17.4 82.0 34 6.0% 10.0% 50.0% 53.1 265.3 15.0 30.0 120.0 71.7% Total Present Value of Free Cash Flows Terminal Growth Rate 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 10.0% 234.6 247.5 263.6 284.2 311.8 350.4 408.3 504.8 697.7 12.0% 171.2 177.5 185.2 194.5 206.1 221.1 241.0 268.9 310.8 14.0% 129.3 132.5 136.3 140.8 146.2 152.8 161.1 171.7 185.8 16.0% 100.2 101.9 103.9 106.1 108.7 111.8 115.5 120.1 125.7 18.0% 79.4 80.3 81.3 82.4 83.7 85.1 86.9 88.9 91.3 20.0% 64.1 64.5 65.0 65.5 66.1 66.3 67.5 68.4 69.5 22.0% 52.5 52.7 52.9 53.1 53.4 53.6 53.9 54.3 54.7 30.0% 26.9 EBIAT Earnings Before Interest, But After Taxes FA = Net Fixed Assets WCOperating Working Capital FCFTotal Free Cash FlowEBIAT (Change in FA and WC) Total Present Value Present Value of FCF Present Value of Terminal Value Terminal Value FCF in year 11 divided by (Discount Rate Terminal Growth Rate)