Free cash flow to Firm (FCFF)

Assume you forecasted the following for firm X

Number of Share outstanding = 400,000

Current Debt = 5000,000 Tax rate = 30%, WACC = 9.75%

	Y1	Y2	Y3	Y4
NI	800,000	850,000	900,000	940,000
Dep	200,000	250,000	225,000	275,000
Cap Exp	350,000	100,000	400,000	300,00
Inc in NWC	-50,000	100,000	750000	25000
Interest	300,000	320,000	330,000	350,000
Constant Growth reate following year = 4%