duction You are analysts on a buyout team with Bain Capital Partners and owe a recomm whether to exit your investment in Dollarama - Should Bain sell at $23 per share? mmendation to leadership on Assumptions Company financial data for Fiscal 2010 (Exhibit 1) is for the first three quarters; spreadsheet contains casewriter projections for the full fiscal year 2010. o Tax rate is 32%, the firm depreciates CAPX over 10 years, and Net Working Capital includes 'Accrued Expenses' o Maintenance CAPX rate will level off at 1.3% of sales, with depreciation falling linearly from its 2009 level to 1.3% over five years (e.g. Maintenance CAPX spend will eventually equal D&A). o Historical operating ratios will remain constant I o No new store openings o Use a debt beta of 0.2, market risk premium of 5%, and assume that the leverage ratios in Exhibit 4 have been stable through time 1. Cost of Capital (Discount Rate) Calculate the appropriate Cost of Capital for Dollarama and use that rate to discount your free cash fl