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Hello, Please assist me on the question regarding WACC, Cash Flow, Terminal Value, Final Value Calculation. Please see below and show calculations in excel: TheXYZCompany.earned$10millionbeforeinterestandtaxesonrevenueof$60millionlastyear.Investmentinfixedcapitalwas$12million,anddepreciationwas$8million.Workingcapitalinvestmentwas$3million.Thecompanyexpectssales,EBIT,investmentinfixedandworkingcapital,depreciationtogrowat12%peryearforthenextfiveyears.Afterthat,thegrowthwilldeclinetoastable4%peryear,andinvestmentsinfixedassetswilloffsetdepreciation.ThecompanysWACCis8%.Whatisafairvalueofthecompany?[Cashflows,terminalvalueinYear6,finalvaluecalculation]

Hello,

Please assist me on the question regarding WACC, Cash Flow, Terminal Value, Final Value Calculation. Please see below and show calculations in excel:

  • TheXYZCompany.earned$10millionbeforeinterestandtaxesonrevenueof$60millionlastyear.Investmentinfixedcapitalwas$12million,anddepreciationwas$8million.Workingcapitalinvestmentwas$3million.Thecompanyexpectssales,EBIT,investmentinfixedandworkingcapital,depreciationtogrowat12%peryearforthenextfiveyears.Afterthat,thegrowthwilldeclinetoastable4%peryear,andinvestmentsinfixedassetswilloffsetdepreciation.ThecompanysWACCis8%.Whatisafairvalueofthecompany?[Cashflows,terminalvalueinYear6,finalvaluecalculation]

Thank you!

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