Based on the latest financial statements and other financial data of the SCS Corporation presented below,...

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Based on the latest financial statements and other financial data of the SCS Corporation presented below, calculate the following: a) Free cash flows (30 points) b) Enterprise Value (10 points) c) Estimated value per share (10 points) Assume that SCS is a mature company and is growing at a constant growth rate. All amounts are in USD in millions INCOME STATEMENT Fiscal year ends in February. Revenue Cost of revenue Gross profit Total Total operating expenses. EBITDA Damperin Depreciation Operating income (EBIT) Interest Expense Income before taxes Provision for income taxes Net income Additional information Weighted average shares outstanding (millions) Tax rate CapEx WACC 3,056 (2,049) 1,007 (780) 227 (66) 161 (18) 143 (36) 107 117 25.00% (80) 7.60% 2.10% 5.00% r(free) = growth rate NWC increase from previous year For the purposes of this exercise, working capital consists of: Accounts receivable, inventory, and accounts payable BALANCE SHEET Assets Total cash Receivables Inventories Prepaid expenses Other current Other current assets. Total current Total current assets. Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Goodwill Intangible assets Other long-term assets Total non-current assets Total assets 283 300 185 19 67 DE A 854 1,433 (998) 435 138 46 46 203 822 1,676 Liabilities and stockholders' equity Current liabilities Short-term debt Accounts payable Accrued liabilities Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Total liabilities and stockholders' equit 30 223 116 184 553 292 68 360 913 763 1,676 Based on the latest financial statements and other financial data of the SCS Corporation presented below, calculate the following: a) Free cash flows (30 points) b) Enterprise Value (10 points) c) Estimated value per share (10 points) Assume that SCS is a mature company and is growing at a constant growth rate. All amounts are in USD in millions INCOME STATEMENT Fiscal year ends in February. Revenue Cost of revenue Gross profit Total Total operating expenses. EBITDA Damperin Depreciation Operating income (EBIT) Interest Expense Income before taxes Provision for income taxes Net income Additional information Weighted average shares outstanding (millions) Tax rate CapEx WACC 3,056 (2,049) 1,007 (780) 227 (66) 161 (18) 143 (36) 107 117 25.00% (80) 7.60% 2.10% 5.00% r(free) = growth rate NWC increase from previous year For the purposes of this exercise, working capital consists of: Accounts receivable, inventory, and accounts payable BALANCE SHEET Assets Total cash Receivables Inventories Prepaid expenses Other current Other current assets. Total current Total current assets. Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Goodwill Intangible assets Other long-term assets Total non-current assets Total assets 283 300 185 19 67 DE A 854 1,433 (998) 435 138 46 46 203 822 1,676 Liabilities and stockholders' equity Current liabilities Short-term debt Accounts payable Accrued liabilities Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Total liabilities and stockholders' equit 30 223 116 184 553 292 68 360 913 763 1,676

Answer rating: 100% (QA)

SOLUTION a To calculate the free cash flows FCF we need to calculate the operating cash flows OCF an... View the full answer