Excel Activity: Distributions as Dividends or Repurchases Start with the partial model in the file Ch15 P13 Build a Model.xlsx. J. Clark Inc. (JCI), a manufacturer and distributor of sports equipment, has grown until it has become a stable, mature company. Now JCI is planning its first distribution to shareholders. (See the file for the most recent year's financial statements and projections for the next year, 2022; JCI's fiscal year ends on June 30.) JCI plans to liquidate and distribute $700 million of its short-term securities on July 1, 2022, the first day of the next fiscal year, but it has not yet decided whether to distribute with dividends or with stock repurchases. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter a negative value, if any. x Download spreadsheet Ch15 P13 Build a Model-5d3720.xlsx a. Assume first that JCI distributes the $700 million as dividends. Fill in the missing values in the file's balance sheet column for July 1, 2022, which is labeled "Distribute as Dividends." (Hint: Be sure that the balance sheets balance after you fill in the missing items.) Assume that JCI did not have to establish an account for dividends payable prior to the distribution. Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places. Distribute as Dividend 7/1/2022 260 million Short-term investments $ Treasury stock $ -300 million Retained earnings $ 11233.88 million b. Now assume that JCI distributes the $700 million through stock repurchases. Fill in the missing values in the file's balance sheet column for July 1, 2022, which is labeled "Distribute as Repurchase." (Hint: Be sure that the balance sheets balance after you fill in the missing items.) Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places. Repurchase." (Hint: Be sure that the balance sheets balance after you fill in the missing items.) Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places. Distribute as Repurchase 7/1/2022 $ million Short-term investments Treasury stock $ million Retained earnings $ million c. Calculate CI's projected free cash flow; the tax rate is 25%. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $ million d. What is CI's current intrinsic stock price (the price on 6/30/2021)? What is the projected intrinsic stock price for 6/30/2022? FCF is expected to grow at a constant rate of 6%, and JCI's WACC is 10%. The firm has 1,000 million shares outstanding. Round your answers to the nearest cent. Intrinsic stock price on 6/30/2021: $ Intrinsic stock price on 6/30/2022: $ e. What is the projected intrinsic stock price on 7/1/2022 if JCI distributes the cash as dividends? Round your answer to the nearest cent. $ f. What is the projected intrinsic stock price on 7/1/2022 if JCI distributes the cash through stock repurchases? Round your answer to the nearest cent. $ How many shares will remain outstanding after the repurchase? Enter your answer in millions. For example, an answer of 1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. c. Calculate CI's projected free cash flow; the tax rate is 25%. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $ million d. What is JCI's current intrinsic stock price (the price on 6/30/2021)? What is the projected intrinsic stock price for 6/30/2022? FCF is expected to grow at a constant rate of 6%, and JCI's WACC is 10%. The firm has 1,000 million shares outstanding. Round your answers to the nearest cent. Intrinsic stock price on 6/30/2021: $ Intrinsic stock price on 6/30/2022: $ e. What is the projected intrinsic stock price on 7/1/2022 if JCI distributes the cash as dividends? Round your answer to the nearest cent. $ f. What is the projected intrinsic stock price on 7/1/2022 if JCI distributes the cash through stock repurchases? Round your answer to the nearest cent. $ How many shares will remain outstanding after the repurchase? Enter your answer in millions. For example, an answer of 1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. million Excel Activity: Distributions as Dividends or Repurchases Start with the partial model in the file Ch15 P13 Build a Model.xlsx. J. Clark Inc. (JCI), a manufacturer and distributor of sports equipment, has grown until it has become a stable, mature company. Now JCI is planning its first distribution to shareholders. (See the file for the most recent year's financial statements and projections for the next year, 2022; JCI's fiscal year ends on June 30.) JCI plans to liquidate and distribute $700 million of its short-term securities on July 1, 2022, the first day of the next fiscal year, but it has not yet decided whether to distribute with dividends or with stock repurchases. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter a negative value, if any. x Download spreadsheet Ch15 P13 Build a Model-5d3720.xlsx a. Assume first that JCI distributes the $700 million as dividends. Fill in the missing values in the file's balance sheet column for July 1, 2022, which is labeled "Distribute as Dividends." (Hint: Be sure that the balance sheets balance after you fill in the missing items.) Assume that JCI did not have to establish an account for dividends payable prior to the distribution. Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places. Distribute as Dividend 7/1/2022 260 million Short-term investments $ Treasury stock $ -300 million Retained earnings $ 11233.88 million b. Now assume that JCI distributes the $700 million through stock repurchases. Fill in the missing values in the file's balance sheet column for July 1, 2022, which is labeled "Distribute as Repurchase." (Hint: Be sure that the balance sheets balance after you fill in the missing items.) Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places. Repurchase." (Hint: Be sure that the balance sheets balance after you fill in the missing items.) Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places. Distribute as Repurchase 7/1/2022 $ million Short-term investments Treasury stock $ million Retained earnings $ million c. Calculate CI's projected free cash flow; the tax rate is 25%. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $ million d. What is CI's current intrinsic stock price (the price on 6/30/2021)? What is the projected intrinsic stock price for 6/30/2022? FCF is expected to grow at a constant rate of 6%, and JCI's WACC is 10%. The firm has 1,000 million shares outstanding. Round your answers to the nearest cent. Intrinsic stock price on 6/30/2021: $ Intrinsic stock price on 6/30/2022: $ e. What is the projected intrinsic stock price on 7/1/2022 if JCI distributes the cash as dividends? Round your answer to the nearest cent. $ f. What is the projected intrinsic stock price on 7/1/2022 if JCI distributes the cash through stock repurchases? Round your answer to the nearest cent. $ How many shares will remain outstanding after the repurchase? Enter your answer in millions. For example, an answer of 1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. c. Calculate CI's projected free cash flow; the tax rate is 25%. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $ million d. What is JCI's current intrinsic stock price (the price on 6/30/2021)? What is the projected intrinsic stock price for 6/30/2022? FCF is expected to grow at a constant rate of 6%, and JCI's WACC is 10%. The firm has 1,000 million shares outstanding. Round your answers to the nearest cent. Intrinsic stock price on 6/30/2021: $ Intrinsic stock price on 6/30/2022: $ e. What is the projected intrinsic stock price on 7/1/2022 if JCI distributes the cash as dividends? Round your answer to the nearest cent. $ f. What is the projected intrinsic stock price on 7/1/2022 if JCI distributes the cash through stock repurchases? Round your answer to the nearest cent. $ How many shares will remain outstanding after the repurchase? Enter your answer in millions. For example, an answer of 1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. million