Income Statements for year ending December 31 Balance Sheet for December 31 A) W

Question

Income Statements for year ending December 31

Balance Sheet for December 31

A) What is the free cash flow for 2015?

B) What is the horizon value as of 12/31/2015?

C) What is the value of operations as of 12/31/2014?

D) What is the total value of the company as of 12/31/2014?

Please show work so its easier to understand.

Actual 2014 Projected 2015 Net Sales 600 635 Costs excluding depreciation 400 425 Depreciation 100 105 Total operating costs 500 530 EBIT 100 105 Less Interest 50 53 Earning before taxes 50 52 Taxes (40%) 20 20.4 Net Income 30 31.6

Explanation / Answer

A) free cash flow for 2015 = 31.6 as this is what we have in our hands after meeting all expenses and paying all the taxes.

B) Horizon value as of 12/31/2015 = EV/ EBITDA

= 389 - 7 - 65 / 105+105 = 1.509

C) the value of operations as of 12/31/2014 = EBIT = 100

D) total value of the company as of 12/31/2014 = Total assets - total liabilties

= 641 - 266 = 375

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