Forecast Year Sales growth rate NOPAT margin Beginning net operating working/sales Beginning net operating long-term assets/sales Beginning net debt to captial ratio After-tax cost of debt 2018 9.39% 9.89% 10.60% 58.10% 57.20% 1.50% 2019 8.31% 10.49% 9.60% 57.00% 57.20% 1.70% 2020 8.42% 11.09% 8.60% 55.70% 57.20% 1.90% 2021 7.60% 10.50% 8.60% 55.70% 57.20% 2.10% 2022 6.80% 9.90% 8.60% 55.70% 57.20% 2.30% 2023 6.00% 9.30% 8.60% 55.70% 57.20% 2.50% 2024 5.30% 8.70% 8.60% 55.70% 57.20% 2.50% 2025 4.50% 8.10% 8.60% 55.70% 57.20% 2.50% 2026 3.80% 7.60% 8.60% 55.70% 57.20% 2.50% 2027 3.00% 7.00% 8.60% 55.70% 57.20% 2.50% (6 Points) Beginning Balance Sheet Beg net working capital + Beg net long term assets = net operating assets 23191.95 127118.15 150310.10 (6 Points) Net Debt +Preferred stock (Assume zero for all the years) + Shareholders' equity = Net Capital 85977.38 0.00 64332.72 150310.10 Income Statement Sales Net operating profits after tax (6 Points) -Net interes expese after tax = Net Income - Preferred dividends (Assume 0 for all the years) = Net Income to common 218792.00 21645.97 1289.66 20356.31 0.00 20356.31 Operating return on assets Return on common equity (6 Points) Book value of assets growth rate Book value of common equity growth rate Net operatin asset turnover 14.40% 31.64% 5.00% 5.00% 1.46 Cash Flow Data Net income -Change in net working capital -Change in net long-term assets + Change in net debt (6 Points) =Free cash flow to equity 20356.31 -23191.95 -127118.15 -85977.38 84689.03 Net operating profit after tax -Change in net working capital -change in net long term assets = Free cash flow to capital 21645.97 -23191.95 -127118.15 171956.07 Forecast Year Sales growth rate NOPAT margin Beginning net operating working/sales Beginning net operating long-term assets/sales Beginning net debt to captial ratio After-tax cost of debt 2018 9.39% 9.89% 10.60% 58.10% 57.20% 1.50% 2019 8.31% 10.49% 9.60% 57.00% 57.20% 1.70% 2020 8.42% 11.09% 8.60% 55.70% 57.20% 1.90% 2021 7.60% 10.50% 8.60% 55.70% 57.20% 2.10% 2022 6.80% 9.90% 8.60% 55.70% 57.20% 2.30% 2023 6.00% 9.30% 8.60% 55.70% 57.20% 2.50% 2024 5.30% 8.70% 8.60% 55.70% 57.20% 2.50% 2025 4.50% 8.10% 8.60% 55.70% 57.20% 2.50% 2026 3.80% 7.60% 8.60% 55.70% 57.20% 2.50% 2027 3.00% 7.00% 8.60% 55.70% 57.20% 2.50% (6 Points) Beginning Balance Sheet Beg net working capital + Beg net long term assets = net operating assets 23191.95 127118.15 150310.10 (6 Points) Net Debt +Preferred stock (Assume zero for all the years) + Shareholders' equity = Net Capital 85977.38 0.00 64332.72 150310.10 Income Statement Sales Net operating profits after tax (6 Points) -Net interes expese after tax = Net Income - Preferred dividends (Assume 0 for all the years) = Net Income to common 218792.00 21645.97 1289.66 20356.31 0.00 20356.31 Operating return on assets Return on common equity (6 Points) Book value of assets growth rate Book value of common equity growth rate Net operatin asset turnover 14.40% 31.64% 5.00% 5.00% 1.46 Cash Flow Data Net income -Change in net working capital -Change in net long-term assets + Change in net debt (6 Points) =Free cash flow to equity 20356.31 -23191.95 -127118.15 -85977.38 84689.03 Net operating profit after tax -Change in net working capital -change in net long term assets = Free cash flow to capital 21645.97 -23191.95 -127118.15 171956.07