Prepare one excel sheet of FCF table.You are interested in acquiring this company (Tupras).

In order to estimate the cash flows and calculate Free Cash Flow.:

You calculate the Revenue growth, Gross profit margin will remain the same over the 6 year estimation period. Tax rate will be assumed as 20%. Assuming that the Total non-current assets represents gross fixed assets, we expect total asset turnover to remain the same. Depreciation will be taken 10% of the non-current assets for the next 6 years. Percentage of Net Working Capital to sales will also remain as they are in 2016. FCF is assumed to grow 4% over long term.

In order to find the WACC:

TUPRAS has no preferred stock and capital structure is assumed to remain the same as it is in 2016 balance sheet over the next 6 years.Tupras current stock price is 119 and Price/Earnings ratio is 10.61 (www.bigpara.com). Tupras has retained 4.5 lira of earning per share in 2016. You can calculate ROE based on the numbers form 2016 balance sheet.Tupras plans to issue 10 years semiannual bonds with 5% coupon rate at a flotation cost of 40 lira per bond and priced at 960. Tax rate is 20%.Calculate the value of Tupras.

w.

Unaudited 1 January Notes 31 March 2017 31 March 2016 872.904 Cash flows from operating activities 875.759 574.869 142.377 5.877 5.877 35.491 80.059 (67.870) 83.114 336.340 134.281 (86.691) (86.691) 33.004 63.872 161.431 Adjustment for reconciliation of profit (loss) Adjustment for depreciation and amortisation expense Adjustments for impairment (cancelation) Adjustments for stock impairment (cancelation) t for Adjustment for interest (income) and expense Adjustment for unrealized foreign currency translation Adjustment for fair value loss (gain) Adjustment for retained income of investments accounted by equity method Adjustment for tax expenses (income) Adjustment for loss (gain) on sales of property, plant and equipment Adjustment for other items related with cash flow of investment or financial activities Other adjustments for reconciliation of profit (loss) Changes in working capital Adjustment for decrease (increase) in trade receivables Adjustment for decrease (increase) in other receivables related with operations Adjustment for decrease (increase) in inventories Adjustment for increase (decrease) in trade payables Adjustment for increase (decrease) in other payables related with operations Cash flows from operating activities Tax retums (payment) Other cash inflow (outflow) (14.733) 12.787 175.970 (123.896) 91.270 338.589 589.130 407.003 (36.465) (436.321) (184.758) 758.043 (195.290) (16.876) 247.285 (513.568) (756.180) (796.613) 920.510 198.039 937.060 (45.512) (18.644) Cash flows from investing activities 104.787 Cash inflows from the sales of property, plant and equipment and intangible assets Cash outflows from the purchase of property, plant and equipment and i 50 (176.102) 70.000 (221.644) 42.000 assets Cash flows from financing activities 423.963 1.364.134 14.097.037 (13.673.346) (99.868) 100.140 9.634.332 (8.268.373) (55.358) 53.533 Cash inflows from financial liabilities Cash outflows from financial liabilities Interest received Net increase (decrease) in cash and cash equivalents before the effect of t paid forei translation 1.192.080 1.730.417 Impact of foreign currency translation on cash and cash uivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of 161.431) 1.568.986 199.168 3.768.154 67.870 1.259.950 6.282.352