Approximately what expected future long-run growth rate would provide the same EBITDA multiple in 2010 as Ideko has in 2005 (i.e., 9.1 x )? Assume that the future debt-to-value ratio is held constant at 40%; the debt cost of capital is 6.9%; Ideko's market share will increase by 0.65% per year until 2010; investment, financing, and depreciation will be adjusted accordingly (see projected capital expenditures here and the projected improvements in working capital Occur (that is, Ideko's working capital requirements through 2010 will be as shown here The projected free cash flows and continuation values are shown here and here respectively. Assume that Ideko's unlevered cost of capital is 12.41%. Assume an income tax rate of 35%. Data Table % (Round to two decimal places.) The expected future long-run growth rate would be Data Table Continuation Value: Multiples Approach ($ 000) EBITDA in 2010 27,876 Free Cash Flow ($ 000) 2005 2006 2007 2008 2009 2010 EBITDA Multiple 9.1 x 6,230 Net Income 4,458 5,058 8,217 8,993 Continuation Enterprise Value 253,672 Plus: After-tax Interest Expense 4,597 4,597 4,597 4,597 4,597 (117,100) Debt 13,590 Unlevered Net Income 9,055 9,655 10,827 12,814 Continuation Equity Value 136,572 Plus: Depreciation 5,801 5,715 5,639 5,570 6,968 (4,016 Less: Increase in NWC 3,149 (2,837) (3,155) (3,613) Data Table (19,550 Less: Capital Expenditures (4,950) (4,950) (4,950) (4,950) (3,008 Free Cash Flow of Firm 8,361 13,055 7,583 9,821 14,600 Plus: Net Borrowing (Click on the following icon in order to copy its contents into a spreadsheet.) (4,597 Less: After-tax Interest Expense (4,597) (4,597) (4,597) (4,597) Ideko Capital Expenditure Assumptions ($ 000) 6,995 8,458 2,986 3,764 3,764 Free Cash Flow to Equity 2005 2006 2007 2008 2009 2010 50,750 4,950 (5,570) 50,130 54,000 4,950 (5,895) Opening Book Value 53,055 4,950 52,204 51,439 4,950 50,130 19,550 (6,968) New Investment 4,950 Print Done (5,715) 51,439 ? Depreciation (5,801) 52,204 (5,639) Closing Book Value 53,055 50,750 62,712 X Approximately what expected future long-run growth rate would provide the same EBITDA multiple in 2010 as Ideko has in 2005 (i.e., 9.1 x)? Assume that the future debt-to-value ratio is held constant at 40%; the debt cost of capital is 6.9%; Ideko's market share will increase by 0.65% per year until 2010; investment, financing, and depreciation will be adjusted accordingly (see projected capital expenditures here and the projected improvements in working capital OcCcur (that is, Ideko's working capital respectively. Assume that Ideko's unlevered cost of capital is 12.41%. Assume an income tax rate of 35%. The projected free cash flows and continuation values are shown here and here requirements through 2010 will be as shown here The expected future long-run growth rate would be%. (Round to t X Data Table Working Capital ($ 000) 2005 2006 2007 2008 2009 2010 Assets 23,063 Accounts Receivable 17,926 14,169 16,077 18,182 20,504 1,683 2,358 Raw Materials 1,899 1,495 1,889 2,113 7,175 Finished Goods 4,167 4,839 5,534 6,310 8,140 10,252 5,975 7,085 8,038 9,091 11,532 Minimum Cash Balance 29,967 35,472 Total Current Assets 27,588 31,332 40,044 45,093 Labilities 1,323 Wages Payable 1,403 1,613 1,803 2,011 2,294 Other Accounts Payable 3,295 3,985 4,682 5,477 6,228 6,978 Total Current Liabilities 4,618 5,388 6,295 7,280 8,239 9,272 25,037 28,192 31,805 35,821 25,349 Net Working Capital 22,200 (3,149) 2,837 3,155 3,613 4,016 Increase in Net Working Capital Enter your answer in the answer box and then click Check Answe Print Done All parts showing Check Answer Approximately what expected future long-run growth rate would provide the same EBITDA multiple in 2010 as Ideko has in 2005 (i.e., 9.1 x )? Assume that the future debt-to-value ratio is held constant at 40%; the debt cost of capital is 6.9%; Ideko's market share will increase by 0.65% per year until 2010; investment, financing, and depreciation will be adjusted accordingly (see projected capital expenditures here and the projected improvements in working capital Occur (that is, Ideko's working capital requirements through 2010 will be as shown here The projected free cash flows and continuation values are shown here and here respectively. Assume that Ideko's unlevered cost of capital is 12.41%. Assume an income tax rate of 35%. Data Table % (Round to two decimal places.) The expected future long-run growth rate would be Data Table Continuation Value: Multiples Approach ($ 000) EBITDA in 2010 27,876 Free Cash Flow ($ 000) 2005 2006 2007 2008 2009 2010 EBITDA Multiple 9.1 x 6,230 Net Income 4,458 5,058 8,217 8,993 Continuation Enterprise Value 253,672 Plus: After-tax Interest Expense 4,597 4,597 4,597 4,597 4,597 (117,100) Debt 13,590 Unlevered Net Income 9,055 9,655 10,827 12,814 Continuation Equity Value 136,572 Plus: Depreciation 5,801 5,715 5,639 5,570 6,968 (4,016 Less: Increase in NWC 3,149 (2,837) (3,155) (3,613) Data Table (19,550 Less: Capital Expenditures (4,950) (4,950) (4,950) (4,950) (3,008 Free Cash Flow of Firm 8,361 13,055 7,583 9,821 14,600 Plus: Net Borrowing (Click on the following icon in order to copy its contents into a spreadsheet.) (4,597 Less: After-tax Interest Expense (4,597) (4,597) (4,597) (4,597) Ideko Capital Expenditure Assumptions ($ 000) 6,995 8,458 2,986 3,764 3,764 Free Cash Flow to Equity 2005 2006 2007 2008 2009 2010 50,750 4,950 (5,570) 50,130 54,000 4,950 (5,895) Opening Book Value 53,055 4,950 52,204 51,439 4,950 50,130 19,550 (6,968) New Investment 4,950 Print Done (5,715) 51,439 ? Depreciation (5,801) 52,204 (5,639) Closing Book Value 53,055 50,750 62,712 X Approximately what expected future long-run growth rate would provide the same EBITDA multiple in 2010 as Ideko has in 2005 (i.e., 9.1 x)? Assume that the future debt-to-value ratio is held constant at 40%; the debt cost of capital is 6.9%; Ideko's market share will increase by 0.65% per year until 2010; investment, financing, and depreciation will be adjusted accordingly (see projected capital expenditures here and the projected improvements in working capital OcCcur (that is, Ideko's working capital respectively. Assume that Ideko's unlevered cost of capital is 12.41%. Assume an income tax rate of 35%. The projected free cash flows and continuation values are shown here and here requirements through 2010 will be as shown here The expected future long-run growth rate would be%. (Round to t X Data Table Working Capital ($ 000) 2005 2006 2007 2008 2009 2010 Assets 23,063 Accounts Receivable 17,926 14,169 16,077 18,182 20,504 1,683 2,358 Raw Materials 1,899 1,495 1,889 2,113 7,175 Finished Goods 4,167 4,839 5,534 6,310 8,140 10,252 5,975 7,085 8,038 9,091 11,532 Minimum Cash Balance 29,967 35,472 Total Current Assets 27,588 31,332 40,044 45,093 Labilities 1,323 Wages Payable 1,403 1,613 1,803 2,011 2,294 Other Accounts Payable 3,295 3,985 4,682 5,477 6,228 6,978 Total Current Liabilities 4,618 5,388 6,295 7,280 8,239 9,272 25,037 28,192 31,805 35,821 25,349 Net Working Capital 22,200 (3,149) 2,837 3,155 3,613 4,016 Increase in Net Working Capital Enter your answer in the answer box and then click Check Answe Print Done All parts showing Check