Venture Coast LLC is looking to acquire a new company. Below are the financials for a potential candidate. Find out the following to determine if Venture Coast should invest. Revenue forecast is as follows: Y$1$: $$600,000$; Y$2$: $$625,000$; Y$3$: $$550,000.$

$1.$ Determine the company valuation for each of the next three years

a$.$ Assume the net earnings, all assets, all liabilities and equity will grow at the same average growth as sales.

b$.$ The price per share is $$1$ and it is forecasted to stay the same

c$.$ There are $500,000$ outstanding shares

d$.$ Venture Coast has a minimum requirement of $10\%$ return on any investment they do

e$.$ Venture Coast has a maximum budget of $$1\mathrm{.}6$ million

Income Statement

For the year ending December $31,2017$

Sales $$500,000$

$$ Cost of goods sold $350,000$

Gross profit $150,000$

$$ Operating expenses $$75,000$

$$ Depreciation $20,000$

EBIT $55,000$

$$ Interest expense $20,000$

EBT $35,000$

$$ Tax Expense $12,250$

EAT $$22,750$

$$ Dividends $10,000$

Retained earnings $$12,750$

B

alance Sheet

December $31,2017$

Cash $ $25,000$ Short$-$term liabilities $60,000$

Marketable securities $10,000$ Mid$-$term liabilities $35,000$

Accounts receivable $50,000$ Long$-$term liabilities $140,000$

Inventories $85,000$ Common Equity $135,000$

Plant, net $200,000\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

TOTAL ASSETS $$370,000$ Total L $+$ E $$370,000$

Remember mergers and acquisitions are based on years of data, not just one year. Therefore, you will have to calculate different financial criteria for all $3$ years. Please upload a Word or Excel file to show your calculations for the following data, similar to how you did for your first evaluation. If you use any other financial methods please include those too.

Book Value and BV Per Share

Market Cap

EBITDA

Earnings Multiplier Per Share$/$Total

Enterprise Value$/$EV Ratio

PV of Growing Perpetuity

Growth Rate

Discount Cash Flow