Question: LTIFORUM LTD is expected to grow at a higher rate for four years l fall and stabiles at a lower level. The following information is

 LTIFORUM LTD is expected to grow at a higher rate for

four years l fall and stabiles at a lower level. The following

LTIFORUM LTD is expected to grow at a higher rate for four years l fall and stabiles at a lower level. The following information is available expected to grow at a higher rate for four vears; thereafter the growth rate Base year (year 0) information Revenues EBIT Capital Expenditure Depreciation orking capital as a % of revenues Corporate tax rate (for all time) Paid up equity capital (Rs. 10 par) Market value of debt Rs. 1,500 lakh Rs. 250 lakh Rs. 175 lakh Rs. 125 lakh 25% 30% Rs.200 lakh Rs. 600 lakh Inputs for the High Growth period Length of high growth phase 4 years 20% 25% 9. 10% Growth rate in revenues depreciation, EBIT Working capital as a percent of revenues Cost of debt (post - tax) Debt- equity ratio Cost of equity and capital expenditure 18.90% Inputs for the stable period 10% 25% 8.5% 2.3% 16% Expected Growth rate in revenues and EBIT Working capital as a % of revenues Cost of debt (post tax) Debt-equity ratio Cost of equity Requirement: the value of multiforum Ltd.in term of forecasted free cash f the value of shareholders

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