Firm value based approach- illustration Current year Revenue: INR 500 crores

Earnings before Interest and after Tax (EBIAT) or Net Operating Profit after Tax (NOPAT): 10%

Present investment in WC: zero

Present Growth rate in operating income: 5%

Current cost of capital: 15% C

ost of Capital drops by 0.10% for every 10% increase in WC/Revenue

Growth rate in revenue and EBIAT: 6%,6.5% ,6.83% and 6.93% when WC/Rev is 10%,20% , 30% and 40% respectively.

Ignore delta capex depreciation and amortization.

What is the optical WC/Rev % (0%,10%,20%,30%,40%) calculations required for all