calculate 1.WACC 2.Capital expenditure analysis 3.Five year financial forecast

Your personalized new store data. Each new store will have a useful life of 15 years. (Be sure to include all 15 years in your capital expenditure analysis). Each new store will require an upfront investment in fixed assets of $15,000,000. Each store will be fully depreciated over its useful life on a straight line basis. This will result in a book value for tax purposes of zero at the end of the store's useful life. However, management expects to be able to sell the store for a pre-tax amount of $2,000,000 at the end of its useful life. The annual sales for each new store starts at $10,000,000 and then grows by 3% each year. Cost of goods sold is 60% of sales and SG&A is 10% of sales. Net working capital is 38% of sales. The store's working capital will be fully recovered in the final year when the store is sold. Your capital expenditure analysis will cover one new store only. You have to create your own spreadsheet for the capital expenditure analysis. Your personalized company data. The company's income tax rate is 36%. The pre-tax current yield to maturity on the company's debt is 5%. The company has one million shares outstanding that are trading at $183 per share. The company has $70 million in debt. The company's beta is 0.9 Financial information. The current yield on 20 year U.S. treasury bonds is 2%. The average return of stocks over the risk free rate for the past 30 years is 6%. (See also next page for the personalized five year financial forecast data the