SN Contents

1 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

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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%