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For Company XYZ,,the projected cash flow components (in $mil) for the next five years are as follows. WACC is 10% and the growth rate is
For Company XYZ,,the projected cash flow components (in $mil) for the next five years are as follows. WACC is 10% and the growth rate is projected to be 6% for free cash flows during the horizon period after 2025. Using mid-year convention method, What is the PV of terminal value of XYZ company based on the EBITDA exit multiple, if the EBITDA exit multiple for 2025 is 15.0x ?
A. | 72.28 | |
B. | 82.12 | |
C. | 79.12 | |
D. | 75.44 |
2021 2022 2023 2024 2025 EBIT 2.9 4.1 4.8 5.8 6.2 Depreciation 1.1 1.2 1.5 1.6 1.9 Tax 0.87 1.23 1.44 1.74 1.86 Net Capital Spending 0.5 0.8 1 1.2 2 Change in NWC 0.25 0.45 0.35 0.55 0.24
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