3.

Question 3

Imagine it is currently the first day of 2019. The corporate tax rate is 40% and the WACC is estimated to be 13% pa. Suppose also that there is no surplus cash in any year and that Terminal Value (TV) at the end of 2022 is estimated to be 4 times the 2022 EBIT. All amounts are given in thousands of dollars ($k) as at the last day of each year. The following forecast has been made for Zilla Ltd:

Calculate the current (start of 2019) enterprise value for Zilla Ltd.

Enter your answer in thousands of dollars and round your answer to two decimal places. For example, an answer of $12.345678k or $12,345.678 should be entered as 12.35.