Question: Use the following information to develop a spreadsheet model that will calculate the free cash flows and the value of the equity for the company.
Use the following information to develop a spreadsheet model that will calculate the free cash flows and the value of the equity for the company. Cost of capital 12% Most recent years sales $1000 Nonoperating assets $100 Interest-bearing debt $250 Operating profit margin 12% Working capital/sales 35% Fixed assets/sales 20% Noninterest-bearing Current liabilities/sales 10% Tax rate 40% Forecasted sales growth Years 12 12% Years 35 8% 6N 4%
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