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 flow110 0120 0150 0170 0200 0250 0280 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) 2 Using the mid year convention, calculate the enterprise value as of December 31, 2016 Assume all cash flows, including perpetuity cash flows, occur midyear

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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 millions2017201820192020202120222023Unlevered free cash flow110.0120.0150.0170.0200.0250.0280.0

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).

2. Using the mid-year convention, calculate the enterprise value as of December 31, 2016. Assume all cash flows, including perpetuity cash flows, occur midyear.

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