Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(5) 4. Use the given information to calculate the value of the firm. After the projected period, free cash flow is expected to grow at
| (5) 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) | 9,000 | ||||
| cogs | |||||
| sga | |||||
| depreciation | |||||
| EBIT | |||||
| Tax | |||||
| Net income | |||||
| NWC | |||||
| Change in NWC | |||||
| NPPE | 7,000 | 8,200 | 8,610 | ||
| Capex | |||||
| FCF | |||||
| Terminal value | |||||
| Total FCF | |||||
| NPV |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Routledge Handbook Of State Owned Enterprises
Authors: Luc Bernier, Massimo Florio, Philippe Bance
1st Edition
1138487694, 978-1138487697
