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

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 314 Cash and cash equivalents 453 719 744 Accounts receivable Inventories 771 722 Total current assets 3,992 3,393 Gross fixed assets Total assets Liabilities and shareholders' equity Current liabilities 496 Accounts payable Accrued taxes and expenses 103 167 446 460 Notes payable Total currentlisbilities Longtem det ODD 90 A $ 4 % 5 & 7 0 8 3 6 Total current liabilities Long-term debt 1,477 1,406 Common stock 501 552 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 3,866 1,192 853 Cost of goods sold Selling, general, and administrative expenses Eamings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation expense Operating income 281 Interest expense 146 Pretax income Income tax (at 26 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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