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EBIT $ 10,000,000.00 Depreciation $ 1,000,000.00 CapEx $ 1,200,000.00 Change in NWC $ 800,000.00 tax rate 21% EBIT Growth First 4 ys 5% Depreciation (10%
| EBIT | $ 10,000,000.00 |
| Depreciation | $ 1,000,000.00 |
| CapEx | $ 1,200,000.00 |
| Change in NWC | $ 800,000.00 |
| tax rate | 21% |
| EBIT Growth First 4 ys | 5% |
| Depreciation (10% of EBIT) | |
| CapEx maintain at 120% of Dep | |
| Change in NWC Growth First 4y | 5% |
| Terminal EBIT Grwth Rate | 3% |
| Terminal NWC Grwth Rate | 3% |
| Risk Free Rate | 3% |
| Equity Beta | 1.1 |
| Market Risk on Debt | 7% |
| Interest Rate on Debt | 4% |
| Debt Weighting | 25% |
| Equity Weighting | 75% |
| Enterprise Value | 540,000,000.00 |
| Risk Free Rate | 3% |
| Equity Beta | 1.1 |
| YEAR | 0 | 1 | 2 | 3 | 4 | Terminal | ||
| EBIT | ||||||||
| Depreciation | ||||||||
| OCF | ||||||||
| CapEx | ||||||||
| Change in WC | ||||||||
| Year 5 Projected FCF | ||||||||
| FCF | Terminal Value | |||||||
| PV of FCF | PV of TV | |||||||
| Total Firm Value | ||||||
| Debt Market Value |
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
3rd Edition
0324232624, 9780324232622
