Question: This question uses the same data as the previous question, shown below. You have been tasked with building a stand-alone DCF valuation for Milner Beverages,

This question uses the same data as the previous question, shown below. 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 2016 (actual) 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 8.0% Perpetuity growth rate (annual growth rate of unlevered free cash flows after 2023) 3.0% Question: Calculate enterprise value as of December 31, 2016 using midyear convention. Assume all cash flows, including perpetuity cash flows, occur midyear. Use whole numbers (i.e. 1 year exactly equals 1 period when calculating returns and discounting).

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