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A Credit Suisse First Boston financial analyst is evaluating Relant home furnishings by using FCF valuation with EBIT. He has accumulated the following information as

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A Credit Suisse First Boston financial analyst is evaluating Relant home furnishings by using FCF valuation with EBIT. He has accumulated the following information as of 2016: . Current Sales is $5,000 million, COGS is 50% of Sales . Net non-cash charge is fixed at 10% of Sales . Corporate tax rate is 21% Investment in Fixed Capital (FC)= 30% of Increase in Sales Investment in Working Capital (WC)=10% of Increase in Sales Sales growth rate forecasts=25% for five years . FCF grows by 5% annual after five years WACC=10% Please estimate Terminal value of FCF (in $millions) in the year 2021 using FCF/EBIT valuation model. O $73,537.34 O $82,882.52 O $101,324.34 O $107,666.02 $108.982.34 None of the above

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