Question
Based on the following data, what is the horizon value at the end of year 5? Year 1 Revenue 650.00 Fixed costs 90.00 Variable costs
Based on the following data, what is the horizon value at the end of year 5?
| Year | 1 | |
| Revenue | 650.00 | |
| Fixed costs | 90.00 | |
| Variable costs | 220.00 | |
| Additional investment in NWC | 3.00 | |
| Additional investment in operating long-term assets | 80.00 | |
| Depreciation | 75.00 | |
| Tax rate | 0.40 |
The free cash flow is expected to grow at 8% from year 1 to year 5 and 6% after year 5 to infinity.
WACCcomp = 12%.
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
