Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello, I need the following spreadsheet filled in and notes on how the answers were derived. SVA EXERCISE Given: Base sales: ($ '000) $250,000 Base
Hello, I need the following spreadsheet filled in and notes on how the answers were derived.
SVA EXERCISE Given: Base sales: ($ '000) $250,000 Base year Fade rate Yr. 10 and after Sales growth: 1.15 0.01 1.05 Operating PM 0.20 0.01 0.1 Fixed capital inv rate 0.15 WC inv rate 0.09 Cash tax rate 0.38 COC 0.11 Market securities $20,000 Debt $50,000 # shares outstanding 5,000,000 Sales Operating Profit NOPAT New Investment Add'l WC Free cash flow PV to year 10 Pv after year 10 1. Value years 1-10 2. Value after year 10 Market securities Total Value Less debt 3. Value of equity Year1 Year 2 Year 3 $285,000.00 $0.00 $0.00 $54,150.00 $0.00 $0.00 $33,573.00 $0.00 $0.00 $5,250.00 $0.00 $0.00 $3,150.00 $0.00 $0.00 $25,173.00 $0.00 $0.00 Note: Fade rate is the year-to-year reduction in the rate to some steady state rate Year 1 = 1.14, year 2 = 1.13, etc. Note: on a per $ of sales basis Note: on a per $ of sales basis (all dollars in thousands) Year 4 Year 5 Year 6 Year 7 Year 8 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Year 9 Year 10 Residual $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started