Base Year (2021) Information (All figures are Million)

Revenue 10000 EBIT= 2500, Capex= 2950, Depreciation = 2400, Working Capital= 20% of Revenue

High Growth Stage (Length 3 years)

Growth in Revenues, Capex, EBIT & Depreciation = 25%, Working Capital= 20% of Revenues, D/E Ratio= 1.5, Risk free rate= 12%, Market Risk Premium-6%. Equity Beta- 1.583, Kd (Pretax)= 15%

Inputs for the Transition Period (Length 3 years)

Growth in EBIT will decline from 25% in year 5 to 10% in year 10 in linear movements of 3% each year, Working Capital= 20% of Revenues, D/E Ratio= 1.1, Risk free rate= 11%, Market Risk Premium=6%. Equity Beta= 1.10, Kd (Pretax)= 14%

Stable Growth Period

Terminal Growth in FCFF-10%, Risk free rate= 10%, Market Risk premium=6%, Equity Beta-1, D/E Ratio=0:1, Kd (Pretax)= 12%, Corporate Tax Rate= 40% (For all Period)

Estimate the value of the firm, using the Discounted Cash Flow (DCF) approach.

NOTE-PLZ ANSWER THIS QUESTION BRIEFLY AND IN GREAT DETAIL (about 3-4 pages). IF YOUR ANSWER WILL BE ACCORDINGLY I WILL SURELY GIVE AN UPVOTE. PLZ ANSWER ASAP..

Q2. Q2. Base Year (2021) Information (All figures are Million) Revenue= 10000 EBIT= 2500, Capex= 2950, Depreciation Revenue = 2400, Working Capital= 20% of High Growth Stage (Length 3 years) = Growth in Revenues, Capex, EBIT & Depreciation 25%, Working Capital= 20% of Revenues, D/E Ratio= 1.5, Risk free rate= 12%, Market Risk Premium=6%. Equity Beta= 1.583, Kd (Pretax)= 15% Inputs for the Transition Period (Length 3 years) Growth in EBIT will decline from 25% in year 5 to 10% in year 10 in linear movements of 3% each year, Working Capital= 20% of Revenues, D/E Ratio= 1.1, Risk free rate= 11%, Market Risk Premium=6%. Equity Beta= 1.10, Kd (Pretax)= 14% Stable Growth Period Terminal Growth in FCFF=10%, Risk free rate= 10%, Market Risk premium=6%, Equity Beta=1, D/E Ratio=0:1, Kd (Pretax)= 12%, Corporate Tax Rate= 40% (For all Period) Estimate the value of the firm, using the Discounted Cash Flow (DCF) approach. Q2. Q2. Base Year (2021) Information (All figures are Million) Revenue= 10000 EBIT= 2500, Capex= 2950, Depreciation Revenue = 2400, Working Capital= 20% of High Growth Stage (Length 3 years) = Growth in Revenues, Capex, EBIT & Depreciation 25%, Working Capital= 20% of Revenues, D/E Ratio= 1.5, Risk free rate= 12%, Market Risk Premium=6%. Equity Beta= 1.583, Kd (Pretax)= 15% Inputs for the Transition Period (Length 3 years) Growth in EBIT will decline from 25% in year 5 to 10% in year 10 in linear movements of 3% each year, Working Capital= 20% of Revenues, D/E Ratio= 1.1, Risk free rate= 11%, Market Risk Premium=6%. Equity Beta= 1.10, Kd (Pretax)= 14% Stable Growth Period Terminal Growth in FCFF=10%, Risk free rate= 10%, Market Risk premium=6%, Equity Beta=1, D/E Ratio=0:1, Kd (Pretax)= 12%, Corporate Tax Rate= 40% (For all Period) Estimate the value of the firm, using the Discounted Cash Flow (DCF) approach