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Please solve as fast as possible Question 6 Find the value of XYZ Co's equity share by using free cash flow to firm (FCFF) approach
Please solve as fast as possible
Question 6 Find the value of XYZ Co's equity share by using free cash flow to firm (FCFF) approach with the help of following information. Not yet answered Marked out of 15.00 APPLICATION OF FUNDS SOURCES OF FUNDS 2020- 2021 2020- 2021 Flag question Shareholders' funds Gross fixed assets 1,100 400 Equity share capital (12 120 crore shares of Rs. 10 each) Less: accumulated depreciation Reserves and Surplus 280 Net fixed assets 700 10% Loan 600 Net working capital 300 1,000 1,000 The EBIT of XYZ for 2020-2021 is Rs.250 crore. Depreciation for the year is Rs. 70crore The company is subject to 40% tax rate. The growth in sales, depreciation NOPAT (net operating profit after tax), gross fixed assets and net working capital will be 18% for the first three years, 10% for the next two years and 7% thereafter. There will be no change in the tax rate and present debt ratio. The expected rate of return of equity shareholders is 16%Step by Step Solution
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