Value the firm using FCFF method.

all of data are in the picture

Q4. Use data below to value Liquor Stores, which operates in retail (grocery and food) industry; average cost of capital is 6.56%. LIQ.TO had a dividend yield of 13.57% as of early March 2016; its management team lowered it to 4.52% on March 9, 2016. LIQ stock market price in March 2016 was $8.25.1 In millions of CAD 20110 20120 20130 20140 Net income D 25 0 190 110 130 " Depreciation 70 70 90 10p " Changes in working capital a (11) 21 0 (1) D Total cash from operations 32 0 30 0 51 0 21 0 H Capital expenditures (5)0 (13) 0 (12) 0 (12) 0 H " Acquisition of business (1) 0 (3) 0 " Sale of fixed assets Total cash from investing (16 0 (12) 0 (12) 0 " Total cash dividends paid a (24) D (23) D (23) D (23) 0 " Common stock, net 10 58 0 " Debt, net O (1) 0 (18) 0 (43) D Total cash from financing (26) 0 (11) 0 (40) (11) D Cash interest paid a 80 70 80 Cash taxes paid a 50 110 Revenue 592 0 630m 6610 6940 Operating income 350 24 0 26 0 Net income 240 190 110 130 Cash and short-term investments ( 50 30 Short-term debt 40 0 40 Current portion of long-term debra 56 0 Long-term debt o 460 1470 1340 92 0 Common shares outstanding 23 0 270 Note: on March 3, 2016, CIBC World Markets ranked LIQ as sector performer in Merchandising and Consumer Products industry. Their 12-18 month target in March 2016 was $11.50. 1 Value the firm using FCFF method