Question: Enterprise Valuation & Terminal Value Given Gross Margin 40% Fixed Costs $ 2,000 Revenue Growth Rate for Years 1 - 5 10% FCF Steady Growth

Enterprise Valuation & Terminal Value
Given
Gross Margin 40%
Fixed Costs $ 2,000
Revenue Growth Rate for Years 1 - 5 10%
FCF Steady Growth 3%
Discount Rate 12%
Year 1 Revenue $ 5,000
Tax Rate 35%
Terminal Year 5
1 2 3 4 5
Revenues
Gross profits
Fixed Costs
Net Operating Income
Taxes
Free Cash Flow
NPV for Years 1-5 Cash Flows
Terminal Value (as of Year 5)
PV of Terminal Value
Enterprise Value
PV of Terminal Value / Enterprise Value

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