Question: FCF estimation Before repurchse After repurchase EBIT 63,946 63,946 Less: Tax (23,821) (18,629) Plus: Depreciation 9,914 9,914 Plus: Deferred Tax 22,495 22,495 Operating Cashflow 72,534

FCF estimation Before repurchse After repurchase EBIT 63,946 63,946 Less: Tax (23,821) (18,629) Plus: Depreciation 9,914 9,914 Plus: Deferred Tax 22,495 22,495 Operating Cashflow 72,534 77,726 Less: CAEPX (Assuming NO CAPEX) 0 oo Less: Change of NWC (Assuming No Change of NWC 0 FCF 72,534 77,726 Weighted Average Cost of Capital (from sheet TN4) 9.34% 8.64% Value of Firm using WACC (using perpertual cash flow 66335.44 71544.27 This is unlevered firm value (Vu) Please compare this tw and answer question #2 Value of firm using MMI with Taxes 81735.44

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