Question: The first tab in the excel file includes a template for valuing Company ABC. a. Complete the Income Statement and Balance Sheet for Years 1,

 The first tab in the excel file includes a template forvaluing Company ABC. a. Complete the Income Statement and Balance Sheet for

The first tab in the excel file includes a template for valuing Company ABC. a. Complete the Income Statement and Balance Sheet for Years 1, 2 and 3. b. Compute Free Cash Flows for Years 1, 2, and 3. c. Estimate the terminal value of the firm in year 3 d. Compute the enterprise value, firm value, and equity value. e. Explore how the equity value changes as the ratio of current assets/sales changes from 10 to 20% in increments of 2%. Intuitively explain this pattern.

FINANCIAL MODEL TEMPLATE FOR COMPANY ABC Sales growth 15% per year Current assets/Sales 15%

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