Kookmin Firm will grow rapidly 8% for 5years , them after it will grow in 5% steadily.

DATA

Baseyear:

- 2018 EBIT = 530,000,000 $

-2018 capital expenditure = 300,000,000 $

-2018 depreciation cost = 200,000,000 $

-2018 sale revenue = 7,000,000,000 $

-sale * 25% = working capital ratio

-tax rate = 30%

- Rf = 4.5%

-market premium = 6.5%

Rapid gorwth stage Variables:

- rapid growth years = 5yrs

- expacted growth rate = 8%

-Cosf of Debt before tax = 4.5%

-Debt/Asset = 50%

-sale revenue, operating income, and depreciation cost will grow 8% every year.

Stable gorwth stage Variables:

- expacted growth rate = 5%

-Cosf of Debt before tax = 4.5%

-Debt/Asset = 25%

-sale revenue, operating income, and depreciation cost will grow permanently 5% every year

Date	Ri	Rm
2018 Jan	5%	-4%
Feb	3%	-3%
March	4%	-2%
Apr	-8%	-6%
May	-4%	7%
Jun	9%	3%
July	-13%	-10%
August	3%	1%
Sep	-.04%	-6%
Oct	16%	11%

Questions:

1. find each stage of beta.

2. find each stage of "cost of equity of capital".

3. find each stage of WACC into account the tax rate effect.

4. Estimate present Eneterpise Value.