Industry: Recreation (Provider of low-cost, 24/7 health and fitness facilities)

Geographical presence: Production in the UK and sales across Europe; UK and Germany main markets (90%)

Additional notes:

The company has sold non-core assets during 2022, generating a profit of 15,622.

The company has performed a department restructuring during 2022, incurring in cost of 323,900.

The manager's daughter is receiving a salary of 16,000 annually from the company but she is not performing any task in the company. This person will no longer receive this compensation.

All results are reinvested in the company (no divided forecasted for the next 5 years).

Profit and loss Data	2021A	2022A	2023B	2024F	2025F	2026F	2027F
Net Sales(+)	17,439,530	18,137,111	18,862,596	19,617,100	20,401,784	21,217,855	22,066,569
COGS(-)	-13,254,043	-13,784,205	-14,335,573	-14,908,996	-15,505,355	-16,125,570	-16,770,592
Operating Expenses(-)	-2,092,744	-2,161,329	-2,178,220	-2,222,537	-2,320,277	-2,380,742	-2,400,366
Other results(+/-)	0	-323,900	0	0	0	0	0
Impairment and gains or losses on disposals of fixed assets(+/-)	26,728	15,622	0	0	0	0	0
Depreciation & Amortization(-)	-109,070	-116,503	-123,531	-126,245	-135,555	-144,509	-144,840
Financial income(+)	10,567	10,814	11,592	11,676	11,742	12,703	13,613
Financial expense(-)	-144,528	-150,782	-160,441	-162,519	-164,366	-170,424	-172,647
EBT	1,876,440	1,626,829	2,076,423	2,208,479	2,287,972	2,409,313	2,591,737
Corporate taxes (25%)	-469,110	-406,707	-519,106	-552,120	-571,993	-602,328	-647,934
Net Income	1,407,330	1,220,122	1,557,317	1,656,359	1,715,979	1,806,985	1,943,802
% Net income margin	8.07%	6.73%	8.26%	8.44%	8.41%	8.52%	8.81%
Balance Sheet Data	2021A	2022A	2023B	2024F	2025F	2026F	2027F
Fixed Assets	2,181,410	2,334,108	2,497,495	2,672,321	2,859,383	3,059,540	3,273,708
Inventories	2,576,627	2,705,458	2,840,731	2,982,767	3,131,906	3,288,501	3,452,926
Trade Receivables	2,628,595	2,760,025	2,898,026	3,042,927	3,195,074	3,354,827	3,522,569
Short-term financial investments	507,911	533,307	559,972	587,970	617,369	648,237	680,649
Cash	1,062,908	1,144,381	1,599,513	2,065,188	2,541,290	3,027,660	3,524,094
Equity	1,154,396	1,419,346	1,934,909	2,467,303	3,016,957	3,584,298	4,169,754
Financial Debt	2,705,470	2,705,470	2,8.407.44	2,982,781	3,131,920	3,288,516	3,452,942
Trade Payables	5,097,583	5,352,462	5,620,085	5,901,090	6,196,144	6,505,951	6,831,249
FCFF
EBITDA	1,985,510	1,743,332	2,199,954	2,334,724	2,423,527	2,553,822	2,736,577

Industry Name	Number of firms	Average Unlevered Beta	Average Levered Beta	Average correlation with the market	Total Unlevered Beta	Total Levered Beta
Recreation	57	1.08	1.42	33.42%	3.22	4.24

Country	Adj. Default Spread	Equity Risk Premium	Country Risk Premium	Corporate Tax Rate	Moody's rating
United Kingdom	0.73%	6.97%	1.03%	25.00%	Aa3
Germany	0.00%	5.94%	0.00%	30.00%	Aaa
Industry Name	Number of Firms	Beta	Cost of Equity	E/(D+E)	Std Dev in Stock	Cost of Debt	Tax Rate	After-tax Cost of Debt	D/(D+E)	Cost of Capital	Cost of Capital (Euros)
Recreation	62	1.02	11.51%	74.62%	30.07%	6.57%	14.28%	4.94%	25.38%	9.84%	8.76%

1) Calculate the Free Cash Flow to the Firm (FCFF)

2) Calculate the Weighted Average Cost of Capital (WACC)