Hi Please answer parts: B, C, and E. All the info you need is included below (it is a forecasted Income statement + some info about the IS). If you need a WACC, use 7.40%.

A E G H K L M B C D F 1 2 (In millions of dollars) Exhibit 1: Paint and Coatings Industry Firms, December 31, 2019 3 Historical 2 3 Market Value 2019 2020 2021 2022 Company Name of Equity Total Debt Sales LTM EBITDA LTM Income Statement Sales 1,000 Axalta Coatings 7.500 3,500 4,000 B45 7 Cost of goods sold 500 PPG Industries 26,000 4,000 15,000 3,000 8 50% 9 Gross profit 500 10 SG&A 200 11 20% 12 Research and development 50 13 5% 14 Gain on sale of assets (extraordinary) 100 15 10% 16 EBITDA 350 17 Depreciation 70 18 7% 19 EBITDA 280 20 Interest expense 30 21 22 EBT 250 23 Taxes 53 24 21% 25 Net income 198 26 27 Balance Sheet Historical You don't need to forecast the balance sheet 28 Assets 2019 29 Cash and cash equivalents 10 30 Accounts receivable 60 31 Inventory 250 32 Total current assets 320 33 Fixed assets 880 34 Accumulated Depreciation 100 35 Net Fixed Assets 780 36 Total assets 1, 100 37 38 Liabilities and Equity 0 39 Accounts payable 30 40 Accrued expenses 40 41 Total current liabilities 70 42 Long-term debt 750 43 Equity 100 44 Retained earnings 180 45 Total equity 280 46 Total Liabilities & equity 1, 100 471B. (See Problem 1 Excel Worksheet) [A] Standalone Valuation. (5 points) Forecast pro-forma unlevered income statements for the next 3 years (2020-2022) using percent of sales forecasting (assume it is the beginning of 2020). You don't need to forecast the balance sheet. Use the following assumptions: Sales will grow by 2% each year All recurring operating expenses and depreciation are a percent of sales based on 2019 levels. . The tax rate is 21%. Find the value per share by discounting the unlevered free cash flows at the WACC assuming that, after year 3 of the forecast, free cash flows will grow by 2%. Assume that working capital is a constant percent of sales based on 2019 levels and capital spending equals depreciation each year. Assume that they will use 50% debt financing and use the WACC from problem 1A above. There are 40 million shares outstanding. (Show work on the 'Problem 1' Excel worksheet.)Year 2019 Historical 2020 2021 2022 Sales 1000.00 1020.00 1040.40 1061.21 Growth rate 0.02 0.02 0.02 Cost of Goods Sold (50% of Sales) 510.00 520.20 630.60 Gross Profit SG&A Research and Development Gain on sale of assets EBITDA Depreciation EBT Taxes @ 21% EAT 221.20 225.62 230.14 234.74 Working Capital current Assets , Current Liabilities 32070 Less: Increase in Working Capital Cash Flows Terminal value Cash flows in year 2022*(1+g)/(WACCg) 205.84*(1+.O2) / 9409112 %) 3888.089 Total Cash Flows 4117.63 PVF @ 7.40% PV of Cash flows 0.81 3323.79 Total value of business (Unlevered) 3724.31 Number of shares outstanding 100 Value per share 37.24 [B] Construct a two-way data table which calculates the value per share in your model in part [A] that varies the terminal growth rate and WACC. (1.5 point) (Show your work on the Excel File.) [C] Your managing director is concerned that calculating the terminal value as a growing perpetuity is unrealistic. Based on the implied EWEBITDA multiple of your terminal value and the comparable firm(s) in the Problem 1 Excel tab. explain whether your estimate seems reasonable. (1.5 point) (Show work on the Excel le: write your answer below.) [E] Determine a range of per share stock values for Valspar based on the comparable rms' EWEBITDA multiples from the information in Exhibit 1 in the Excel le. (2 points} (Show work on the Excel le; write your answer below.)