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An asset manager is valuing the listed company EVORA with expected year - on - year growth rate of EBIT as given in Table 1
An asset manager is valuing the listed company EVORA with expected yearonyear growth rate of EBIT as given in Table Year is the companys first year of activity. Table Year Year Year Year how to compute sales???? The EBIT margin as percentage of sales is expected to grow basis points per year between year and year In year the expected level of sales is with EBIT margin of Additional assumptions are: Depreciation: of sales, all years Recurrent Capex: of sales for year with percentage decreasing basis points per year until year Change in working capital: of yearly changes of EBIT Tax rate: Target capital structure: debtdebt equity ratio of Asset beta: Riskfree rate: Equity risk premium: Debt spread: To answer the following questions, make plausible assumptions if necessary. a Compute the Free Cash Flows to the Firm FCF for the period from year until year including year Round your computations to zero decimal places. Explain your answer.
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