Question: Does this look correct. Required Return 13% Projected Sales next year 100,000,000.00 Cost 40% NWC 10% Rate 14% yrs 1-3 Depreciation 20% Shares OS 6,500,000.00
Does this look correct.
| Required Return | 13% | |||||
| Projected Sales next year | 100,000,000.00 | Cost | 40% | NWC | 10% | |
| Rate | 14% | yrs 1-3 | Depreciation | 20% | Shares OS | 6,500,000.00 |
| Rate | 5% | yrs 4- infinite | Tax Rate | 35% | ||
| Year | CF FV | EBIT | FCF | TV=FCF4*(1+g)/r-g | Taxes | |
| Year1 | 100000000.00 | 94000000 | 71100000 | 32900000.00 | ||
| Year2 | 114000000.00 | 107160000 | 91054000.00 | 37506000.00 | ||
| Year3 | 129960000.00 | 122162400 | 167648400.00 | 42756840.00 | ||
| Year4 | 136458000.00 | 128270520 | 128270520.00 | 1683550575.00 | 44894682.00 | |
| Year | 0.08 | 0.13+0.05 | ||||
| Year | 1.63 | (1.13)^4 | ||||
| Depreciaton | NOPAT | NWC Change | PV = FCF/(1+r)^ | |||
| Year1 | 20000000 | 61100000.00 | 1400000.00 | 62920353.98 | ||
| Year2 | 22800000 | 69654000.00 | 1596000.00 | 71308638.11 | ||
| Year3 | 25992000 | 79405560.00 | 649800.00 | 116188750.83 | ||
| Year4 | 27291600 | 83375838.00 | 1032553096.64 | |||
| Year | FCF YEAR 2 | 91054000 | ||||
| Total firm value | 1282970839.56 | |||||
| Per share value | 197.38 | |||||
| Shares outstanding | 6,500,000.00 |
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