Modify the financial forecast below to incorporate the following: 1) Extend the financial forecast to 2018 (5-year forecast) 2) Change the the EBITDA margin assumption to 8.8% for 2014 and decrease the EBITDA margin by 10% each year after that. If ROC drops below the WACC, record the first year when that is forecasted to happen (the WACC = 7%). Record your answer in the space provided (at right). Fill in this table with the results of your calculations Item Year ROC drops below the WACC (or never) WHOLE FOODS MARKET Deutsche Bank Model (millions of USD, except per share figures) At Fiscal Year End Store Growth Sales Growth EBITDA Margin Tax Rate Actual Actual Actual Forecast Forecast Forecast 2011 2012 2013 2014 2015 2016 Forecast 2017 Forecast 2018 4.0% 7.7% 8.1% 8.5% 8.5% 12.2% 15.7% 10.4% 12.0% 12.0% 8.5% 9.0% 9.5% 10.0% 10.0% 38.1% 38.4% 38.8% 38.8% 38.8% Current Asset Turnover 7.0 5.6 6.5 6.0 6.0 Current Liabilities Turnover 10.5 10.9 10.7 10.0 10.0 Net PP&E/Store 9.2 9.2 9.3 9.3 9.3 Annual Dep. & Amort./Store 1.45 1.43 1.44 1.44 1.44 Stores 311 335 362 393 426 Sales 10,108 11,699 12,917 14,467 16,203 EBITDA 859 1,055 1,222 1,447 1,620 Dep. & Amort. 450 479 523 566 614 EBIT 409 576 699 881 1,007 Taxes 209 286 343 342 391 Net Income 200 290 356 539 616 Shares Outstanding 350 364 372 372 372 Earnings per Share 0.57 0.80 0.96 1.45 1.65 Current Assets 1,453 2,103 1,980 2,411 2,701 Current Liabilities 880 977 1,088 1,302 1,458. Net Working Capital 573 1,126 892 1,109 1,242 Net PP&E 2,856 3,082 3,351 3,653 3,963 Return on Capital 7.4% 8.4% 10.1% 11.3% 11.8% Answer