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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 year-on-year growth rate of EBIT as given in Table 1. Year 1 is the companys first year of activity. Table 1 Year 2 Year 3 Year 4 Year 5+2%+6%+5%+2% how to compute sales???? The EBIT margin (as percentage of sales) is expected to grow 55 basis points (0.55%) per year between year 2 and year 5. In year 1, the expected level of sales is 67,000 with EBIT margin of 6%. Additional assumptions are: Depreciation: 5% of sales, all years Recurrent Capex: 7% of sales for year 1, with percentage decreasing 45 basis points per year until year 4 Change in working capital: 12% of yearly changes of EBIT Tax rate: 20% Target capital structure: debt/(debt + equity) ratio of 55% Asset beta: 1.35 Risk-free rate: 3% Equity risk premium: 6% Debt spread: 4% 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 1 until year 5, including year 5. Round your computations to zero decimal places. Explain your answer.

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