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Black Uprasmul Inc. is a publicly traded company that reported an operating loss on revenues of Rp1 billion in the most recent time period. You
Black Uprasmul Inc. is a publicly traded company that reported an operating loss on revenues of Rp1 billion in the most recent time period. You expect revenues to grow at 2% a year in perpetuity and you also expect the firm to turn from operating losses to operating profits over the next 5 years: 1 2 4 Revenues (in million rupiahs) Pre-tax Operating margin 1,020.00 -3.00% 1,040.40 -1.00% 3 1,061.21 2.00% 1,082.43 5.00% 5 1,104.08 8.00% The firm has a net operating loss of Rp30 million to carry forward and expects to pay a marginal tax rate of 40%, once it has absorbed these losses. If the sales to capital ratio on incremental revenues is expected to be 2.00 for the next 5 year, estimate the free cash flows to the firm for each of those years
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