1 INPUTS: 2 Tax rate 3 Assumed steady state growth rate: 4 Firm's weighted average cost of capital: 5 Firm's total debt: 6 Number of shares outstanding: All numbers that are not percents or otherwise specified are in 39% terms of millions of dollars 3% So Revenue of $1,000 represents 1,000 million dollars or $1 billion; 9% 38 for the number of shares is 38 million shares, etc. $235 38.00 Steady State (constant) growth starts in 2025 7 00 ACTUAL DATA FORECAST 9 10 Revenue 11 Less: Cost of goods sold 12 Equals: Gross profit 13 Less: Selling, gen', and admin exp 14 Less: depreciation 15 Equals: Operating income 16 Less: Interest Expenses 17 Equals: Earnings before taxes 18 Less: Income tax 19 Equals: Net income 20 21 Capital expenditures (Capex) 22 23 Current Assets 24 Current Liabilties 25 Net Working Capital 2020 $1,000.00 $500.00 $500.00 $291.79 $51.30 $156.91 $25.00 $131.91 $51.44 $80.47 2021 2022 2023 2024 $1,080.00 $1,188.00 $1,259.28 $1,309.65 $540.00 $594.00 $629.64 $654.83 $540.00 $594.00 $629.64 $654.83 $332.15 $378.32 $407.21 $425.86 $55.40 $60.94 $64.60 $67.19 $152.45 $154.74 $157.83 $161.78 $25.00 $28.00 $30.00 $32.00 $127.45 $126.74 $127.83 $129.78 $49.70 $49.43 $49.85 $50.61 $77.74 $77.31 $77.98 $79.16 2025 $1,348.94 $674.47 $674.47 $438.64 $69.20 $166.63 $35.00 $131.63 $51.34 $80.29 $63.99 $73.96 $82.21 $89.64 $98.09 $145.52 $22.18 $123.34 $157.16 $85.62 $71.54 $172.88 $119.14 $53.74 $183.25 $143.51 $39.74 $190.58 $161.74 $28.84 $196.30 $160.26 $36.04 Steady stage (constant) grovt begins 2021 2022 2023 2024 2025 26 COMPUTE Free Cash Flow to the Firm (use Equation 13.9 in text; same as presented in 27 lecture video for FCFF) 28 29 EBIT(1-t) 30 Plus Depreciation 31 Less CAPEX 32 less change in NWC 33 Equals FCFF 34 Terminal value 35 Present values of FCFF, Terminal Value 36 37 Firm value (sum of PVs) 38 Less: Debt value 39 Equals: Equity Value 40 Intrinsic value of equity per share FIND ALL VALUES FOR "BLUE Cells