December 31, 2010 is t-0. Sales = $4,000; Dep =$480; NOPAT = $600. December 31, 2011...

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December 31, 2010 is t-0. Sales = $4,000; Dep =$480; NOPAT = $600. December 31, 2011 2012 2014 30% 20% 5% 80 0 Growth rate (g) ADEP 90 Changes in Dep afterwards are all zero. @=2%; c=1.2; f =50% Required: 2013 10% 90 a. 12 marks Forecast FCF for the 4 years 2011, 2012, 2013 and 2014. b. 8 marks 2014 (t = 4) is the beginning of the perpetuity period. The growth rate in perpetuity is g = 2.5%. and WACC = 12.5% Calculate V at t=0 using the FCF/DCF method. December 31, 2010 is t-0. Sales = $4,000; Dep =$480; NOPAT = $600. December 31, 2011 2012 2014 30% 20% 5% 80 0 Growth rate (g) ADEP 90 Changes in Dep afterwards are all zero. @=2%; c=1.2; f =50% Required: 2013 10% 90 a. 12 marks Forecast FCF for the 4 years 2011, 2012, 2013 and 2014. b. 8 marks 2014 (t = 4) is the beginning of the perpetuity period. The growth rate in perpetuity is g = 2.5%. and WACC = 12.5% Calculate V at t=0 using the FCF/DCF method.

Answer rating: 100% (QA)

TC Fixed cost V sales TC 20000 075 sales Explanation Variable cost to sales ratio Change in total cost Change in sales 132500 110000 150000 120000 22500 30000 075 Therefore v 075 For the year A total ... View the full answer