Yum! Brands Incorporated

Balance Sheet $2021$

Cash and short$-$term investments $ $491$

Accounts receivable $601$

Other current assets $475$

Long$-$lived assets $4,464$

Total assets $ $6,031$

Current liabilities $ $1,440$

Total liabilities $14,349$

Shareholders$$ equity $(8,318)$

Total liabilities and equity $ $6,031$

Income Statement

Sales $ $6,634$

Cost of sales $1,750$

Gross margin $ $4,884$

Earnings before interest and taxes $ $2,223$

Interest $549$

Taxes $104$

Net income $ $1,570$

Share price $ $144$

Earnings per share $5\mathrm{.}80$

Number of outstanding shares $($millions$)297$

Cash Flows

Cash flow from operations $ $1,711$

Capital expenditures $235$

Dividends $617$

Required:

Determine the valuation of the company at the end of $2021$ using each of the following three methods. Assume earnings and cash flows for the coming $10$ years are equal to the earnings and cash flows in $2021$; the appropriate free cash flow multiple is $23\mathrm{.}4.$

Note: Enter your answers in millions rounded to nearest whole number.

Market capitalization.

Enterprise value.

Free cash flow multiple.Yum! Brands Incorporated

Balance Sheet $2021$

Cash and short$-$term investments $ $491$

Accounts receivable $601$

Other current assets $475$

Long$-$lived assets $4,464$

Total assets $ $6,031$

Current liabilities $ $1,440$

Total liabilities $14,349$

Shareholders$$ equity $(8,318)$

Total liabilities and equity $ $6,031$

Income Statement

Sales $ $6,634$

Cost of sales $1,750$

Gross margin $ $4,884$

Earnings before interest and taxes $ $2,223$

Interest $549$

Taxes $104$

Net income $ $1,570$

Share price $ $144$

Earnings per share $5\mathrm{.}80$

Number of outstanding shares $($millions$)297$

Cash Flows

Cash flow from operations $ $1,711$

Capital expenditures $235$

Dividends $617$

Required:

Determine the valuation of the company at the end of $2021$ using each of the following three methods. Assume earnings and cash flows for the coming $10$ years are equal to the earnings and cash flows in $2021$; the appropriate free cash flow multiple is $23\mathrm{.}4.$

Note: Enter your answers in millions rounded to nearest whole number.

Market capitalization.

Enterprise value.

Free cash flow multiple.