in addition your analyst tells you that based on historical norms

,

your C

o

GS is 48.5%

and the operating expenses typically run at 23.4%. Calculate the Net Income for each

year based on the assumptions using a 28.5% tax rate, the

Company is debt free and

assuming all fixed assets are fully depreciated.

(

5

marks

)

Derive a value for the company based on the PV of the forecasted Net Incom