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. Dantes 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 472 352
Accounts receivable 732 766
Inventories 715 735
Total current assets _____ _____
Gross fixed assets 3,157 3,108
Total assets _____ _____
Liabilities and shareholders equity
Current liabilities
Accounts payable 421 457
Accrued taxes and expenses 193 138
Notes payable 480 416
Total current liabilities _____ _____
Long-term debt 1,667 1,575
Common stock 580 503
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 3,020
Cost of goods sold 1,079
Selling, general, and administrative expenses 748
Earnings before interest, taxes, depreciation, and amortization (EBITDA) ____
Depreciation expense 257
Operating income ____
Interest expense 102
Pretax income ____
Income tax (at 28 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".

Hint: To get the balance sheet data, remember that assets are equal to liabilities plus shareholders' equity.

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