You have been asked to value the Industries, a sports equipment manufacturer and have come up with the following inputs.   Base Year Information (2016) ·       Earnings before interest and taxes in 20X0 =$600 million ·       Capital expenditures in 20X0 = $120 million ·       Depreciation in 20X0 = $100 million ·       Revenues in 20X0 = $6,000 million ·       Working capital as percent of revenues = 20% ·       Tax rate = 40%   High-Growth Phase ·       Length of high-growth phase = 5 years ·       Expected growth rate in FCFF=15% ·       Beta = 1.30 ·       Cost of debt = 8% (pre-tax) ·       Debt ratio = 30% ·       Risk-free rate = 7% ·       Market Risk Premium (MRP) = 6%   Stable-Growth Phase ·       Expected growth rate in FCFF= 3% ·       Beta = 1.5 ·       Cost of debt =7% (pre-tax) ·       Debt ratio = 25% ·       Risk-free rate = 7% ·       Market Risk Premium (MRP) = 6%   Required:   Estimate the Terminal Value of North Island Industries.

Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $50,000 2 35,000 3 30,000 4 20,000 Thereafter 0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment. a. What is the initial investment in the product? Remember working capital. b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm’s tax rate is 20%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. c. If the opportunity cost of capital is 10%, what is the project's NPV? d. What is the project IRR?

You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its future investments in new plant and working capital: Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Pretax profit Tax at 30% Investment 1 $ 73 33 40 12 19 a. Total value b. Laputa's equity Year 2 $93 43 50 15 22 3 $ 108 48 60 18 25 4 $ 113 53 60 18 27 From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 60% by equity and 40% by debt. Its cost of equity is 18%, its debt yields 9%, and it pays corporate tax at 30%. a. Estimate the company's total value. Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. b. What is the value of Laputa's equity? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount.

Based on this information, create and solve a ratio analysis: In their most recent discussion with VP Finance, they were informed that total sales next year (2022) was expected to be $1,500,000. You should assume the same amount of turnover in 2022 as there was in the past 5 years. Number of new hires and turnover by year Year New Hires Turnover 2017 10 5 2018 20 7 2019 22 9 2020 25 12 2021 15 15 Sales per year Year Service Sales Product Sales 2017 $250,000 $ 200,000 2018 $350,000 $325,000 2019 $400,000 $450,000 2020 $550,000 $600,000 2021 $625,000 $675,000 How many employees need to be hired in 2022, show all calculations