Part III: Worth 5 points. Fill in the blanks in the following table. (Data in mi
ID: 2749472 • Letter: P
Question
Part III: Worth 5 points. Fill in the blanks in the following table.
(Data in millions)
Nick Inc.
EBIT
100
Tax
20
EBIAT
Depreciation and amortization
30
Increase in working capital
10
Unlevered FCF from Ops
Capital expenditures
30
Unlevered Free cash flow
Interest expense
5
Tax shield on interest
1
Free cash flow
Free cash flow to equity
Equity
450
Debt
160
Cash
10
Enterprise value
600
Revenue
200
Multiples
Revenue
EBIT
EBITDA
Unlevered free cash flow
Free cash flow to equity
(Data in millions)
Nick Inc.
EBIT
100
Tax
20
EBIAT
Depreciation and amortization
30
Increase in working capital
10
Unlevered FCF from Ops
Capital expenditures
30
Unlevered Free cash flow
Interest expense
5
Tax shield on interest
1
Free cash flow
Free cash flow to equity
Equity
450
Debt
160
Cash
10
Enterprise value
600
Revenue
200
Multiples
Revenue
EBIT
EBITDA
Unlevered free cash flow
Free cash flow to equity
Explanation / Answer
(Data in millions) Nick Inc. EBIT 100 Tax 20 EBIAT 80 Depreciation and amortization 30 Increase in working capital 10 Unlevered FCF from Ops 100 Capital expenditures 30 Unlevered Free cash flow 70 Interest expense 5 Tax shield on interest 1 Free cash flow 66 Free cash flow to equity 66 Equity 450 Debt 160 Cash 10 Enterprise value 600 Revenue 200 Multiples Revenue 200 EBIT 100 EBITDA 70 Unlevered free cash flow 70 Free cash flow to equity 66