INSTRUCTIONS: NOT FOLLOWING THE INSTRUCTIONS WILL COST YOU. HAVING INCORRECT ANSWERS BECAUSE OF FORMAT WILL NOT BE FORGIVEN. READ CAREFULLY THE INSTRUCTIONS. A = 3, B = 5, C = 3, and D = 2. Therefore, for any time that A appears as a number, you may use 1, for B you will use 2 and so on. Each of the questions has a specific cell for you to put your answers.

You MUST submit the excel document. Submitting a PDF document is optional. ANSWER IN PERCENTAGE FOR PERCENTAGE ANSWERS. If your answer is 0.0405, then answer 4.05. DO NOT USE %. ANSWER IN DOLLARS FOR NUMERICAL NUMBERS, USE FOUR DECIMALS.

If your answer is 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

HOW TO FILL OUT THE EXCEL DOCUMENT: Student ID: Cell A2 Problem 1, A: Cell B2 Problem 1, B: Cell C2 Problem 2, A: Cell D2 Problem 2, B: Cell E2 Problem 2, C: Cell F2 Problem 2, D: Cell G2 Problem 3, A: Cell H2 Problem 3, B: Cell I2 Problem 3, C: Cell J2 Problem 3, D: Cell K2 Problem 3, E: Cell L2 Problem 3, F: Cell M2 Problem 3, G: Cell N2 Problem 3, H: Cell O2 1) Medtronic firm has $[(1,000,000*(A+B)+$55,000,000] in equity and $55,000,000 in debt and forecast $[(1,000,000*(C)+$22,000,000] in net income for the year. It currently pays dividends equal to [(A+B+C+D)]% of its net income. a. What would their internal growth rate be?

NOTE: Answer in percentage. If your answer is 0.0405, then answer 4.05. b. What would their sustainable growth rate be? NOTE: Answer in percentage. If your answer is 0.0405, then answer 4.05. 2) For the following problems, use Exhibit A. For exhibit A, the amount of sales depends on the production volume shown below.

The dividend policy is to pay [21+D+C]% in dividends. Construct the Production volume table based on your student ID number as per the instructions shown below. a. What will be the depreciation for 2023? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

b. What will be the cash and equivalents for 2020? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

c. What will be the accounts payable for 2021? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

d. Imagine that the corporation decides to use debt for any external financing, what would be the amount of debt in 2020? (If no net new financing is needed, then answer with a negative number) NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

3) For the following problems, use Exhibit B. Exhibit B has the balance sheet and Income Statement projections for a specific company. The company is evaluating if it is worth it to have the capital investment as shown in the Capital Investment Table. The EBITDA multiplier of similar companies [(D+5.2)].

The debt used has a coupon of [(C+3.5)]%. The WACC is [7+C+D+2]%. a. What is the increase in Net Working Capital for 2020? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc. b. What is the increase in Net Working Capital for 2021? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

c. What would be the Free Cash Flow for 2020? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

d. What would be the Free Cash Flow for 2021? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

e. What is the present value of the Free cash flows? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

f. What is the present value of the continuation value for the firm? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

g. What is the present value of the Interest Tax Shield? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.

h. What is the Firm Value with the expansion of the project? NOTE: Provide your answers in dollars. E.G. for 100M you must enter 100000000.0000, for 20M you must enter 20000000.000, etc.