FCFF VALUATION Consider a company with: Previous year revenues $$10,000$ Estimated revenue growth : $5\%,4\%,3\%,2\%$ and $2\%$ over the next $5$ years respectively Cost of goods sold $($COGS$)-50\%$ of sales Selling, general & administrative expenses $($SG&A$)-15\%$ of sales The effective tax rate$-30\mathrm{.}0\%$ Current$/$Future Networking capital requirements$-5\%$ of sales Number of shares outstanding$850$ Capital expenditures and depreciation costs planned according to the below table: Historical Period Prejection Period Year $2$ Year$3$ Year$4$ Year$5$ Year CAPEX Depreciation ear $1300$ $$200294284270275$ $$210$ $$218$ $$225$ $$229$ After year $5$ FCFF is expected to grow into perpetuity at $2\%$ Total Debt $-$$$10,000$ Risk free rate $=4\%$ Credit spread$-2\%$ Tax rate$-30\%$ Beta$-1\mathrm{.}5$ Equity market risk premium $5\%\%$ of debt$-30\%\%$ of equity$-70\%$ FIND WACC CALCULATER $1.$ RISK RATE? $2.$ CREDID SREAD? $3.$ COST OF DEBT$($PRE TAX$)4.$ TAX RATE $?5.$ COST DEBT $($AFTER TAX$)6.$ RISK FREE RATE $?7.$ BETA $?8.$ EQUITY MARKET RISK PREMIUM $?9.$ COST OF EQUITY $?10.\%$ of DEBT $11.\%$ of EQUITY $12.$ WACC?