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Under the assumption that Ideko’s market share will increase by

Under the assumption that Ideko’s market share will increase by

Under the assumption that Ideko€™s market share will increase by 0.5% per year (and the investment and financing will be adjusted as described in Problem 3), you project the following depreciation:

Using this information, project net income through 2010 (that is, reproduce Table 19.7 under the newassumptions).

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Under the assumptions that Ideko’s market share will increase by 0.5% per year (implying that...... ... 4) but that the projected improvements in net working capital do not transpire (so the numbers in Table 19.8 remain at their 2005 levels through 2010), calculate Ideko’s working capital...

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Assume that Ideko’s market share will increase by 0.5% per year rather than the 1% used in the chapter. What production capacity will Ideko require each year? When will an expansion become necessary (when production volume will exceed the current level by 50%)?

Forecast Ideko’s free cash flow (reproduce Table 19.10), assuming Ideko’s market share

Forecast Ideko’s free cash flow (reproduce Table 19.10), assuming Ideko’s market share will increase by 0.5% per year; investment, financing, and depreciation will be adjusted accordingly; and the projected improvements in working capital occur (that is, under the assumptions in Problem 5).

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Questions related to Corporate Finance

Corporate Finance Questions

Transcribed Image Text

Year 2005 2006 2007 2008 2009 2010 Fixed Assets and Capital Investment S 000) 2 New Investment 3 Depreciation 5,000 (5,500 5,450 (5,405 5,365 (5,328) 6,795) 5000 5,000 5,000 5,000 20.000

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Corporate Finance

3rd edition

Authors: Jonathan Berk and Peter DeMarzo

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