You are an analyst valuing Palm and Sun Industries for a possible acquisition. Compute the Adjusted Present Value. The buyer wants cash flows evaluated for 20 years and assumes a terminal value a $50 M to be discounted at 15%. Ignore taxes. Annual cash flow from continuing operations $ 88 M. Discount at 15%. Annual cash flow from product line expansion $ 17 M. Discount at 18%. Annual cash flow from tax savings $ 6 M. The interest rate on debt is 6% and the tax rate is 40%. You do not need to calculate a terminal value for tax savings.

For Palm and Sun Industries, calculate depreciation given the following data: Beg Net PPE $1695, End Net PPE $3319 Cap Ex $1791. There were no sales nor liquidations of assets.

Swamp & Sand Industries has the following data. At a discount rate of 12%, calculate its Adjusted Present Value (APV) for 20X1 through 20X3. Interest expense is $5 million per year. The interest rate on debt is 6%. The corporate tax rate is 40%. 20X1 20X2 20X3 FCF 156 156 156 Depreciation 2 2 2 All numbers are in millions.

Given the following data from Swamp & Sand Industries, calculate the NI. The tax rate is 30%. Sales 1194 Cost of Sales 400 SGA 310 Depreciation 92 Interest Expense 8 NWC 24 CapEx 101 Dividends 34 Note SGA does not include depreciation.

Swamp & Sand Industries has the following data for the coming year. Free cash flow, cash, and debt are constant. Terminal value is 3 times FCF. The discount rate is 13%. Calculate its Enterprise Value. Free Cash Flow 133 Cash 29 Debt 280

Given the following data from Swamp & Sand Industries, calculate the EBIT. The tax rate is 30%. Sales 11683 Cost of Sales 5091 SGA 1458 Depreciation 1083 Interest Expense 130 NWC 560 CapEx 1041 Dividends 199 Note SGA does not include depreciation.

Swamp & Sand Industries has the following data for the coming year. Free cash flow, cash, and debt are constant. Terminal value is 3 times FCF. The discount rate is 12%. Calculate its Equity Value. Free Cash Flow 182 Cash 41 Debt 121