The next two questions use the data below The data will be repeated on the next question You have been tasked with building a stand alone DCF valuation for Milner Beverages, a publicly traded company, using the unlevered two stage approach You calculate the following $ in millions 2017 2018 2019 2020 2021 2022 2023 Unlevered free cash flow 110 0 120 0 150 0 170 0 200 0 250 0 280 0 In addition, you calculate the following WACC 8 00 Perpetuity growth rate (annual growth rate of unlevered free cash flows after 2023) 3 00 Calculate enterprise value at the beginning of 2017 assuming all cash flows occur at year end Use whole numbers (i e 1 year exactly equals 1 period when calculating returns and discounting)

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Question: The next two questions use the data below. The data will be repeated on the next question: You have been tasked with building a stand-alone

The next two questions use the data below. The data will be repeated on the next question:

You have been tasked with building a stand-alone DCF valuation for Milner Beverages, a publicly traded company, using the unlevered two-stage approach. You calculate the following:

$ in millions	2017	2018	2019	2020	2021	2022	2023
Unlevered free cash flow	110.0	120.0	150.0	170.0	200.0	250.0	280.0

In addition, you calculate the following:

WACC = 8.00%
Perpetuity growth rate (annual growth rate of unlevered free cash flows after 2023) = 3.00%

Calculate enterprise value at the beginning of 2017 assuming all cash flows occur at year-end. Use whole numbers (i.e. 1 year exactly equals 1 period when calculating returns and discounting).

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