SN Contents1 Landmark Historical Financial and Common Size 2 Broadway Historical Financial and Common Size 3 Pre-Acquisition Projection of Both Companies 4 Treasury Bill, Corporate Bond Rates and Market Risk Premium 5 Comparables data and Unlevered Beta 6 Broadway Capital Structure and Debt Obligation under both options 7 Calculation of Beta, Ke and WACC 8 Post-Acquisition of both companies and combined firm - Optimistic Case 9 Post-Acquisition of both companies and combined firm - Pessimistic Case 10 Valuation of Both companies and Combined firm under both options 11 Dilution of Equity For full set of answer, Please mail me at
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Landmark Financials Common Size In US$ Million 2010 2011 2012 2013 2014 [E] 2010 2011 Income statement Net sales 222.2 222.2 222.2 222.2 222.2 222.22% 222.22% COGS 222.2 222.2 222.2 222.2 222.2 22.22% 22.22% Gross profit 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Operating expenses 22.2 22.2 22.2 22.2 22.2 2.22% 2.22% Depreciation and amortization 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Operating profit 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Interest expense 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Income taxes 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Net income 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% EPS 22.22 22.22 22.22 22.22 22.22 Dividend 22.22 22.22 22.22 22.22 22.22 Balance sheet Cash 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Accounts receivable 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Other current assets 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Current assets 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Net PP&E 2.2 2.2 2.2 2.2 22.2 2.22% 2.22% Investments and other assets 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Total assets 22.2 22.2 22.2 22.2 22.2 222.22% 222.22% Accounts payable 2.2 2.2 2.2 2.2 22.2 2.22% 2.22% Bank borrowing 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Current Liabilities 2.2 2.2 22.2 22.2 22.2 2.22% 2.22% Accrued expenses and deferred taxes 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Other non-current liabilities 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Total liabilities 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Shareholders' equity 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Total liabilities and equity 22.2 22.2 22.2 22.2 22.2 222.22% 222.22% Common Size 2012 2013 2014 [E] 222.22% 222.22% 222.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 22.22% 22.22% 22.22% 2.22% 2.22% 2.22% 22.22% 22.22% 22.22% 2.22% 2.22% 22.22% 22.22% 22.22% 22.22% 222.22% 222.22% 222.22% 2.22% 2.22% 22.22% 2.22% 2.22% 2.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 222.22% 222.22% 222.22% Broadway Financials Common Siz In US$ Million 2010 2011 2012 2013 2014 [E] 2010 2011 Income statement Net sales 222.2 222.2 222.2 222.2 222.2 222.22% 222.22% COGS 222.2 222.2 222.2 222.2 222.2 22.22% 22.22% Gross profit 22.2 22.2 22.2 22.2 22.2 2.22% 2.22% Operating expenses 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Depreciation and amortization 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Operating profit 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Interest expensea 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Income taxes 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Net income 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% EPS 22.22 22.22 22.22 22.22 22.22 Dividends 22.22 22.22 22.22 22.22 22.22 Balance sheet Cash 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Accounts receivable 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Other current assets 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Current assets 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Net PP&E 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Investments and other assets 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Total assets 22.2 22.2 22.2 22.2 22.2 222.22% 222.22% Accounts payable 2.2 2.2 22.2 22.2 22.2 22.22% 22.22% Long-term debt, current portionb 2.2 2.2 2.2 2.2 2.2 2.22% 2.22% Current Liabilities 2.2 22.2 22.2 22.2 22.2 22.22% 22.22% Long-term debt 2.2 2.2 2.2 2.2 2.2 22.22% 22.22% Accrued expenses and deferred taxes 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Other non-current liabilities 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Total liabilities 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Shareholders 'equity 22.2 22.2 22.2 22.2 22.2 22.22% 22.22% Total liabilities and equity 22.2 22.2 22.2 22.2 22.2 222.22% 222.22% a Interest rate on long-term debt outstanding is at 4.5% per year. b Principal amount of long-term debt is amortized at $0.4m per year. Net WC 2.2 2.2 2.2 2.2 2.2 Net WC as % of Sales 2.2% 2.2% 2.2% 2.2% 2.2% Common Size 2012 2013 2014 [E] 222.22% 222.22% 222.22% 22.22% 22.22% 22.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 22.22% 22.22% 22.22% 2.22% 2.22% 2.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 222.22% 222.22% 222.22% 22.22% 22.22% 22.22% 2.22% 2.22% 2.22% 22.22% 22.22% 22.22% 22.22% 2.22% 2.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 22.22% 222.22% 222.22% 222.22% Landmark Financials In US$ Million 2015 2016 2017 2018 2019 Net sales 222.2 222.2 222.2 222.2 222.2 Operating profit 2.2 2.2 2.2 2.2 2.2 Net income 2.2 2.2 2.2 2.2 2.2 Depreciation and amortization 2.2 2.2 2.2 2.2 2.2 Change in net working capital 2.2 2.2 2.2 2.2 2.2 Capital expenditure 2.2 2.2 2.2 2.2 2.2 Total FCF 2.2 2.2 2.2 2.2 2.2 Broadway Financials In US$ Million 2015 2016 2017 2018 2019 Net sales 222.2 222.2 222.2 222.2 222.2 Operating profit 2.2 2.2 2.2 2.2 2.2 Interest expense 2.2 2.2 2.2 2.2 2.2 Net income 2.2 2.2 2.2 2.2 2.2 Depreciation and amortization 2.2 2.2 2.2 2.2 2.2 Change in net working capital 2.2 2.2 2.2 2.2 2.2 Capital expenditure 2.2 2.2 2.2 2.2 2.2 Total FCF 2.2 2.2 2.2 2.2 2.2 *Numbers in the exhibits are based on the assumption Broadway does not acquire Landmark. Exhibit 5 Selected Capital Markets Information as of September 1, 2014 Treasury: 3-month Treasury bill rate 2.22% 1-year Treasury bond rate 2.22% 10-year Treasury bond rate 2.22% Corporate bond yield: Aaa 2.22% Aa 2.22% A 2.22% Baa 2.22% Market risk premium 2.22% Chosen Parameters Risk-free rate (10-Yr Tbill Rate) 2.22% Market Risk Premium 2.22% Exhibit 4 Financial Data of Publically Traded Competitors, 2014 (U.S. $ millions) In US$ Mn Comparable Company 1 Comparable Company 2 Comparable Company 3 Sales 222,222.2 22,222.2 2222.2 Net income 2222.2 2222.2 222.2 EPS 22.22 22.22 22.22 Share price 222.22 222.22 222.22 Number of shares outstanding 222.2 22.2 22.2 Market capitalization 22,222.2 22,222.2 2222.2 Debt 22,222.2 2222.2 2222.2 Assets 222,222.2 22,222.2 2222.2 Equity beta 2.22 2.22 2.22 P/E 22.22 22.22 22.22 Market Cap to Sales 2.22 2.22 2.22 D/E 2.2 2.2 2.2 Equity Beta (levered) 2.22 2.22 2.22 Unlevered Beta 2.22 2.22 2.22 Average Unlevered Beta 2.22 Pre Acq Post Acq New Loan Servicing (100% debt financing) - US$ Mn New @ 100% debt New @ 1:1 Broadway Existing financing financing Year Op Loan Bal Interest Repayment Long term debt 2.22 222.22 22.22 2015 222.22 2.22 - Equity 22.22 22.22 222.22 2016 222.22 2.22 - Total Capital 22.22 222.22 222.22 2017 222.22 2.22 2.22 2018 222.22 2.22 2.22 Debt % 22.2% 22.2% 22.2% 2019 222.22 2.22 2.22 Equity % 22.2% 22.2% 22.2% 2020 222.22 2.22 2.22 2021 222.22 2.22 2.22 D/E 2.22 2.22 2.22 2022 22.22 2.22 2.22 2023 22.22 2.22 22.22 New Loan Servicing (50% debt financing) - US$ Mn Year Op Loan Bal Interest Repayment 2015 22.22 2.22 - 2016 22.22 2.22 - 2017 22.22 2.22 - 2018 22.22 2.22 - 2019 22.22 2.22 - 2020 22.22 2.22 22.22 ancing) - US$ Mn Optimistic Case Pessimistic Case Total annual Broadway Broadway Broadway obligation incl Standalone Int combined Standalone Int Cl Loan Bal old loan Op Profit coverage profit Int Cov Op Profit coverage 222.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 222.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 222.22 22.22 2.22 2.22 22.22 2.22 2.22 2.22 222.22 22.22 2.22 2.22 22.22 2.22 2.22 2.22 222.22 22.22 2.22 2.22 22.22 2.22 2.22 2.22 222.22 22.22 22.22 22.22 22.22 22.22 - 22.22 ncing) - US$ Mn Optimistic Case Pessimistic Case Total annual Broadway Broadway Broadway obligation incl Standalone Int combined Standalone Int Cl Loan Bal old loan Op Profit coverage profit Int Cov Op Profit coverage 22.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 22.22 2.22 2.22 2.22 - 22.22 Pessimistic Case Broadway combined profit Int Cov 22.22 2.22 22.22 2.22 22.22 2.22 22.22 2.22 22.22 2.22 Pessimistic Case Broadway combined profit Int Cov 22.22 2.22 22.22 2.22 22.22 2.22 22.22 2.22 22.22 2.22 1st Alternative (100% Debt) 2nd Alternative (50% Debt) Broadway D/E 2.2 2.2 Unlevered Beta 2.2 2.2 Tax Rate 22% 22% Levered Beta 2.22 2.22 Risk-free rate 2.22% 2.22% Market risk premium 2.22% 2.22% Cost of Equity (CAPM) 22.2% 22.2% Cost of Debt (Pre-tax) 2.22% 2.22% Cost of Debt (Post-tax) 2.22% 2.22% Debt portion 22.2% 22.2% Equity portion 22.2% 22.2% WACC 2.22% 2.22% Landmark In US$ Million 2015 2016 2017 2018 2019 2020 Sales Growth 2% 2% 2% 2% 2% 2% Sales 222.2 222.2 222.2 222.2 222.2 222.2 Operating Margin 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Capital Expenditure % of sales 2% 2% 2% 2% 2% 2% Depreciation 2.2 2.2 2.2 2 2.2 2.2 Non-cash Net WC as % of sales 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Net WC 22.22 22.22 22.22 22.22 22.22 22.22 Net sales 222.22 222.22 222.22 222.22 222.22 222.22 Operating profit 2.22 2.22 22.22 22.22 22.22 22.22 Net income 2.22 2.22 2.22 2.22 2.22 2.22 Depreciation and amortization 2.22 2.22 2.22 2.22 2.22 2.22 Increase in net working capital (2.2) (2.2) 2.2 2.2 (2.2) 2.2 Capital expenditure 2.22 2.22 2.22 2.22 2.22 2.22 Total FCFF 2.22 2.22 2.22 2.22 2.22 2.22 Broadway In US$ Million 2015 2016 2017 2018 2019 2020 Sales Growth -22.22% -22.22% 2.22% 2.22% 2.22% 2.22% Sales 222.22 222.22 222.22 222.22 222.22 222.22 Gross Margin 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Opex as % of sales 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Capex as % of sales 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Depreciation 2.2 2.2 2.2 2.2 2.2 2.2 Non-cash Net WC as % of sales 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Net WC 2.22 2.22 2.22 2.22 2.22 2.22 Net sales 222.2 222.2 222.2 222.2 222.2 222.2 Gross profit 22.2 22.2 22.2 22.2 22.2 22.2 Opex 2.2 2.2 2.2 2.2 2.2 2.2 Operating profit 2.2 2.2 22.2 22.2 22.2 22.2 Interest expense 2.2 2.2 2.2 2.2 2.2 2.2 Net income 2.2 2.2 2.2 2.2 2.2 2.2 Depreciation and amortization 2.2 2.2 2.2 2.2 2.2 2.2 Increase in net working capital (2.2) (2.2) 2.2 2.2 2.2 2.2 Capital expenditure 2.2 2.2 2.2 2.2 2.2 2.2 Total FCFF 2.22 2.22 2.22 2.22 2.22 2.22 Combined (100% debt financing) In US$ Million 2015 2016 2017 2018 2019 2020 Sales 222.22 222.22 222.22 222.22 222.22 222.22 Operating Profit 22.22 22.22 22.22 22.22 22.22 22.22 Interest Expense - Old Loan 2.22 2.22 2.22 2.22 2.22 2.22 Interest Expense - New Loan 2.22 2.22 2.22 2.22 2.22 2.22 Net Income 2.22 2.22 2.22 22.22 22.22 22.22 Depreciation and amortization 2.22 2.22 2.22 2.22 2.22 2.22 Increase in net working capital (2.22) (2.22) 2.22 2.22 (2.22) 2.22 Capital expenditure 2.22 2.22 2.22 2.22 2.22 2.22 Total FCFF 2.22 22.22 22.22 22.22 22.22 22.22 Combined (50% debt financing) In US$ Million 2015 2016 2017 2018 2019 2020 Sales 222.22 222.22 222.22 222.22 222.22 222.22 Operating Profit 22.22 22.22 22.22 22.22 22.22 22.22 Interest Expense - Old Loan 2.22 2.22 2.22 2.22 2.22 2.22 Interest Expense - New Loan 2.22 2.22 2.22 2.22 2.22 2.22 Net Income 2.22 2.22 22.22 22.22 22.22 22.22 22.2% Depreciation and amortization 2.22 2.22 2.22 2.22 2.22 2.22 Increase in net working capital (2.22) (2.22) 2.22 2.22 (2.22) 2.22 Capital expenditure 2.22 2.22 2.22 2.22 2.22 2.22 Total FCFF 2.22 22.22 22.22 22.22 22.22 22.22 22.2% 22.2% 22.2% 22.2% 22.2% Landmark In US$ Million 2015 2016 2017 2018 2019 2020 Sales Growth 2% 2% 2% 2% 2% 2% Sales 222.2 222.2 222.2 222.2 222.2 222.2 Operating Margin 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Capital Expenditure % of sales 2% 2% 2% 2% 2% 2% Depreciation 2.2 2.2 2.2 2 2.2 2.2 Non-cash Net WC as % of sales 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Net WC 22.22 22.22 22.22 22.22 22.22 22.22 Net sales 222.22 222.22 222.22 222.22 222.22 222.22 Operating profit 2.22 2.22 22.22 22.22 22.22 22.22 Net income 2.22 2.22 2.22 2.22 2.22 2.22 Depreciation and amortization 2.22 2.22 2.22 2.22 2.22 2.22 Increase in net working capital (2.2) 2.2 2.2 (2.2) 2.2 2.2 Capital expenditure 2.22 2.22 2.22 2.22 2.22 2.22 Total FCFF 2.22 2.22 2.22 2.22 2.22 2.22 Broadway In US$ Million 2015 2016 2017 2018 2019 2020 Sales Growth -22.22% -22.22% 2.22% 2.22% 2.22% 2.22% Sales 222.22 222.22 222.22 222.22 222.22 222.22 Gross Margin 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Opex as % of sales 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Capex as % of sales 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Depreciation 2.2 2.2 2.2 2.2 2.2 2.2 Non-cash Net WC as % of sales 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Net WC 2.22 2.22 2.22 2.22 2.22 2.22 Net sales 222.2 222.2 222.2 222.2 222.2 222.2 Gross profit 22.2 2.2 22.2 22.2 22.2 22.2 Opex 2.2 2.2 2.2 2.2 2.2 2.2 Operating profit 2.2 2.2 2.2 2.2 22.2 22.2 Interest expense 2.2 2.2 2.2 2.2 2.2 2.2 Net income 2.2 2.2 2.2 2.2 2.2 2.2 Depreciation and amortization 2.2 2.2 2.2 2.2 2.2 2.2 Increase in net working capital (2.2) (2.2) 2.2 2.2 2.2 2.2 Capital expenditure 2.2 2.2 2.2 2.2 2.2 2.2 Total FCFF 2.22 2.22 2.22 2.22 2.22 2.22 Combined (100% debt financing) In US$ Million 2015 2016 2017 2018 2019 2020 Sales 222.22 222.22 222.22 222.22 222.22 222.22 Operating Profit 22.22 22.22 22.22 22.22 22.22 22.22 Interest Expense - Old Loan 2.22 2.22 2.22 2.22 2.22 2.22 Interest Expense - New Loan 2.22 2.22 2.22 2.22 2.22 2.22 Net Income 2.22 2.22 2.22 2.22 2.22 22.22 Depreciation and amortization 2.22 2.22 2.22 2.22 2.22 2.22 Increase in net working capital (2.22) 2.22 2.22 (2.22) 2.22 2.22 Capital expenditure 2.22 2.22 2.22 2.22 2.22 2.22 Total FCFF 2.22 2.22 2.22 22.22 22.22 22.22 Combined (50% debt financing) In US$ Million 2015 2016 2017 2018 2019 2020 Sales 222.22 222.22 222.22 222.22 222.22 222.22 Operating Profit 22.22 22.22 22.22 22.22 22.22 22.22 Interest Expense - Old Loan 2.22 2.22 2.22 2.22 2.22 2.22 Interest Expense - New Loan 2.22 2.22 2.22 2.22 2.22 2.22 Net Income 2.22 2.22 2.22 22.22 22.22 22.22 22% Depreciation and amortization 2.22 2.22 2.22 2.22 2.22 2.22 Increase in net working capital (2.22) 2.22 2.22 (2.22) 2.22 2.22 Capital expenditure 2.22 2.22 2.22 2.22 2.22 2.22 Total FCFF 2.22 2.22 2.22 22.22 22.22 22.22 22% 22% 22% 22% Landmark - Optimistic Scenario 2015 2016 2017 2018 2019 FCFF 2.22 2.22 2.22 2.22 2.22 Discounting Factor at 8.54% 2.22 2.22 2.22 2.22 2.22 PV of FCFF 2.22 2.22 2.22 2.22 2.22 Sum of PV of FCFF 22.22 Terminal Growth 2% Terminal Yr FCFF 2.22 Terminal Value 22.22 PV of Terminal Value 22.22 Enterprise Value 22.22 Less: Non Current Liabilities (22.22) Equity Value 22.22 Broadway - Optimistic Scenario 2015 2016 2017 2018 2019 FCFF 2.22 2.22 2.22 2.22 2.22 Discounting Factor at 8.54% 2.22 2.22 2.22 2.22 2.22 PV of FCFF 2.22 2.22 2.22 2.22 2.22 Sum of PV of FCFF 22.22 Terminal Growth 2% Terminal Yr FCFF 2.22 Terminal Value 222.22 PV of Terminal Value 22.22 Enterprise Value 222.22 Less: Non Current Liabilities (22.22) Equity Value 22.22 Combined Firm - Optimistic Case 2015 2016 2017 2018 2019 FCFF 2.22 22.22 22.22 22.22 22.22 Discounting Factor at 8.54% 2.22 2.22 2.22 2.22 2.22 PV of FCFF 2.22 2.22 2.22 2.22 22.22 Sum of PV of FCFF 22.22 Terminal Growth 2% Terminal Yr FCFF 2.22 Terminal Value 222.22 PV of Terminal Value 222.22 Enterprise Value 222.22 Less: Non-Current Liabilities (22.22) Equity Value 222.22 2020 Landmark - Pessimistic Scenario 2015 2016 2017 2018 2.22 FCFF 2.22 2.22 2.22 2.22 2.22 Discounting Factor at 8.54% 2.22 2.22 2.22 2.22 2.22 PV of FCFF 2.22 2.22 2.22 2.22 Sum of PV of FCFF 22.22 Terminal Growth 2% Terminal Yr FCFF 2.22 Terminal Value 22.22 PV of Terminal Value 22.22 Enterprise Value 22.22 Less: Non Current Liabilities (22.22) Equity Value 22.22 2020 Broadway - Pessimistic Scenario 2015 2016 2017 2018 2.22 FCFF 2.22 2.22 2.22 2.22 2.22 Discounting Factor at 8.54% 2.22 2.22 2.22 2.22 2.22 PV of FCFF 2.22 2.22 2.22 2.22 Sum of PV of FCFF 22.22 Terminal Growth 2% Terminal Yr FCFF 2.22 Terminal Value 222.22 PV of Terminal Value 22.22 Enterprise Value 22.22 Less: Non Current Liabilities (22.22) Equity Value 22.22 2020 Combined Firm - Pessimistic Case 2015 2016 2017 2018 22.22 FCFF 2.22 2.22 2.22 22.22 2.22 Discounting Factor at 8.54% 2.22 2.22 2.22 2.22 2.22 PV of FCFF 2.22 2.22 2.22 2.22 Sum of PV of FCFF 22.22 Terminal Growth 2% Terminal Yr FCFF 2.22 Terminal Value 222.22 PV of Terminal Value 222.22 Enterprise Value 222.22 Less: Non-Current Liabilities (22.22) Equity Value 222.22 2019 2020 2.22 2.22 2.22 2.22 2.22 2.22 2019 2020 2.22 2.22 2.22 2.22 2.22 2.22 2019 2020 22.22 22.22 2.22 2.22 2.22 2.22 In US$ Million Optimistic Pessimistic Value of Combined Firm 153.83 122.59 Equity Raised (40% ownership) 61.53 49.04 Dilution when US$ 60 mn is raised 39.0% 48.9%