Question
2021 2022 2023 2024 2025 EBIT 2.9 4.1 4.8 5.8 6.2 Depreciation 1.1 1.2 1.5 1.6 1.9 Tax 0.87 1.23 1.44 1.74 1.86 Net Capital
2021 | 2022 | 2023 | 2024 | 2025 | |
EBIT | 2.9 | 4.1 | 4.8 | 5.8 | 6.2 |
Depreciation | 1.1 | 1.2 | 1.5 | 1.6 | 1.9 |
Tax | 0.87 | 1.23 | 1.44 | 1.74 | 1.86 |
Net Capital Spending | 0.5 | 0.8 | 1 | 1.2 | 2 |
Change in NWC | 0.25 | 0.45 | 0.35 | 0.55 | 0.24 |
For Company XYZ,,the projected cash flow components (in $mil) for the next five years are as follows. WACC is 10% and the growth rate is projected to be 6% for free cash flows during the horizon period after 2025. Using mid-year convention method, What is the PV of terminal value of XYZ company based on the EBITDA exit multiple, if the EBITDA exit multiple for 2025 is 15.0x ? (10 Points)
Question 8 options:
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A) | 72.28 |
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B) | 79.12 |
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C) | 75.44 |
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D) | 82.12 |
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