Question
Given the following information ItemsYear 2023 2024 2025 Terminal year (2026) EBIT 8.55 12.68 18.68 27.13 FCInv 1.32 1.87 2.57 3.65 WCInv 1.47 2.29 3.41
Given the following information
| Items\Year | 2023 | 2024 | 2025 | Terminal year (2026) |
| EBIT | 8.55 | 12.68 | 18.68 | 27.13 |
| FCInv | 1.32 | 1.87 | 2.57 | 3.65 |
| WCInv | 1.47 | 2.29 | 3.41 | 4.80 |
Assume that tax rate is 0.4. Year 2026 is the terminal year. The value of the firm in 2026 will be 10 times its FCFF in 2026. Finally, assume that the firm's discount rate is 12%. What is the value of the firm?
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Banking With Integrity The Winners Of The Financial Crisis
Authors: Dr Heiko Spitzeck , Dr Michael Pirson, Dierksme , Dr. Heiko Spitzeck , Prof. Claus Dierksmeier, Dr. Michael Pirson
1st Edition
0230289959,0230346499
