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 year's 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%

rax rate                                40%

forecasted sales growth      

        years 1-2                      12%

        years 3-5                       8% 

        years 6-∞                      4%

calculate the value of the firm and the value of the equity in the firm using DCF analysis. 

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