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3) At the end of Fiscal Year 2013, you are given the following information (2013 are actuals. 2014 and 2015 are forecasts.) Assume a 21%
3) At the end of Fiscal Year 2013, you are given the following information (2013 are actuals. 2014 and 2015 are forecasts.) Assume a 21% tax rate. Item 2013 2014 2015 Revenue $ 1,719.28 $ 1,753.66 $ 1,797.51 EBIT $ 154.74 $ 157.83 $ 161.78 NWC $ 264.50 $ 250.52 $ 239.67 Net Fixed Assets $ 880.50 $ 898.11 $ 920.56 a) What is the Free Cash Flow to the Firm in 2014? b) What is the Free Cash Flow to the Firm in 2015? Assume a 21% tax rate, steady state growth for 2016 forward of 3.0%, the NWC and Net Fixed Assets to sales ratios to say constant from 2015 forward, and a 9.0% cost of capital for the firm. c) What is the terminal value as of FY ending 2015? d) What is the Enterprise value of the firm at the end of FY 2013
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