QUESTION 14

Given the following, calculate the terminal value for the dividend discount model below.

Cost of equity	12%
Wacc	9%
Growth rate	2.50%
	0	1	2	3	4	5
Dividend		500	509	516	528	539
Terminal Value						?

		5,815.53
		4,432.73
		7,207.31
		6,343.58

10 points

QUESTION 15

Given the following, calculate the free cash flow to the firm (FFCF).

	2021	2022
EBIT	146,000	150,000
EBITDA	159,000	168,000
Tax rate	21%	21%
Non-Cash Working Capital	23,000	28,500
Capex	16,800	17,250
Inventory	100,000	102,000

		32,602
		113,750
		131,146
		88,084