20x1 20x2 Growth Sales 4,500,000 4,950,000 10% COGS and Expenses 3,616,000 S 3,960,000 10% Operating Profit 884,000 990,000 12% Fixed Capital 1,800,000 1,900,000 6% Working Capital 1,500,000 S 1,650,000 10% Marketable Securities 500,000 393,000 -21% Ext Debt & Obligations (@Book Value) 900,000 S 1,000,000 11% Ext Debt & Obligations (@Market Value) 1,000,000 $ 1,200,000 20% Capital and Reserves (@Book Value) 2,900,000 S 2,940,000 1% Number of Shares Issued 985,000 1,000,000 2% Share Price S 2.70 $ 2.60 -4% 7 Value Drivers Sales Growth Rate 10% Cash Operating Profit Margin 20% Tax Rate 40% Fixed Capital Investment Rate 22% Working Capital Investment Rate 35% Cost of Capital 8% Planning Period 2