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4. Use the given information to calculate the value of the firm. After the projected period, free cash flow is expected to grow at a
4. Use the given information to calculate the value of the firm. After the projected period, free cash flow is expected to grow at a constant 3.5%. Show all work. | ||||
Revenue Growth for the next 2 years | 6.00% | |||
COGS | 55.00% | WACC | 10.90% | |
SG&A | 20.00% | Tax Rate | 39.00% | |
Net working capital (NWC)/sales | 22.00% | |||
Depreication | 1000 | Straight-line depreciation |
2022 2023 2024
Revenue ($ thousands) | 9000 | ||||
cogs | |||||
sga | |||||
depr | |||||
ebit | |||||
tax | |||||
ni | |||||
NWC | |||||
NPPE | 7000 | 8200 | 8610 | ||
capex | |||||
FCF | |||||
TV | |||||
total fcf | |||||
npv |
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