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(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 | |||
NWC | ||||
NPPE | 7,000 | 8,200 | 8,610 |
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