FCFF/ FCFE Case study Balance Sheet 1. Revenues are to grow by 10%,12%,15%,13% respectively following 4 years. 2.Use Opex/Sale ratio to model operating expenses. 3. Investment in capital expenditure will be $400,$500,$600,$500 (mainly in machinery, with an average useful life of each asset 5 years). Average useful life of assets as at Dec- 067 years, Dec-07years. 5. Interest expense will be stable - $100. 6. Risk free rate is at the level of 3%. 7. Market risk premium is 9%. 8. Beta is 0.9. 9. Use turnover formulas to project NWC. FCFF/ FCFE Case study Balance Sheet 1. Revenues are to grow by 10%,12%,15%,13% respectively following 4 years. 2.Use Opex/Sale ratio to model operating expenses. 3. Investment in capital expenditure will be $400,$500,$600,$500 (mainly in machinery, with an average useful life of each asset 5 years). Average useful life of assets as at Dec- 067 years, Dec-07years. 5. Interest expense will be stable - $100. 6. Risk free rate is at the level of 3%. 7. Market risk premium is 9%. 8. Beta is 0.9. 9. Use turnover formulas to project NWC