Question: Doc Tom is preparing a presentation that analyzes the valuation of the common stock of Dante Corporation. Tom has prepared preliminary valuations of Dante using


Doc Tom is preparing a presentation that analyzes the valuation of the common stock of Dante Corporation. Tom has prepared preliminary valuations of Dante using a FCFF model. Dante's 2018 and 2019 financial statements, contained in Exhibits 1 and 2, are prepared in accordance with US GAAP (in millions). Exhibit 1. Dante Corporate Partial Consolidated Balance Sheet (As of December 31) 2019 2018 Assets Current assets Cash and cash equivalents 484 457 Accounts receivable 783 771 Inventories 710 799 Total current assets Gross fixed assets 3,386 3,610 Total assets Liabilities and shareholders' equity Current liabilities Accounts payable 416 481 Accrued taxes and expenses 147 152 Notes payable 474 440 Total current liabilities Long-term debt 1,586 1,523 Common stock 553 516 Retained earnings Total liabilities and shareholders' equity Exhibit 2. Dante Corporation Consolidated Income Statement for the Year Ended 31 December 2019 (US$ Millions) Total revenues 3,950 Cost of goods sold 1,069 762 Selling, general, and administrative expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation expense 222 Operating income Interest expense 176 Pretax income Income tax (at 30 percent) Net income Your task is to calculate the FCFF. Write your answer in decimal form and round it to two decimal places. Your answer will be in millions, for example - if you get 234.24, you can write 234.24 - but in fact, it is 234.24 "millions
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