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Please project the amount of FCFE for Omega next year based on the following data: GDP growth is expected to expand 4% next year. The
Please project the amount of FCFE for Omega next year based on the following data: GDP growth is expected to expand 4% next year. The income elasticity for the products produced by Omega is 2. Current Sales is $50M Working capital balance is currently at $10M and is expected to grow in proportion with sales. Assume that the net profit margin (net income/sales) is projected to be 10%. We expect to require $100M of net fixed asset to produce the next year sales. Currently, net fixed asset is $90M and depreciation should total $10M by the time the new capital expenditure is made next year. (Ignore new borrowing and loan repayment) Estimate the FCFE for next year. Please project the amount of FCFE for Omega next year based on the following data: GDP growth is expected to expand 4% next year. The income elasticity for the products produced by Omega is 2. Current Sales is $50M Working capital balance is currently at $10M and is expected to grow in proportion with sales. Assume that the net profit margin (net income/sales) is projected to be 10%. We expect to require $100M of net fixed asset to produce the next year sales. Currently, net fixed asset is $90M and depreciation should total $10M by the time the new capital expenditure is made next year. (Ignore new borrowing and loan repayment) Estimate the FCFE for next year
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