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Sales and Administrative Expenses 40 Capital 900 Growth rates Years Tax rate 0.3 0.8 1 Debt 300 0.9 2 Other operating expenses 30 0.4 3

Sales and Administrative Expenses

40

Capital

900

Growth rates

Years

Tax rate

0.3

0.8

1

Debt

300

0.9

2

Other operating expenses

30

0.4

3

Depreciation

120

0.2

4

Interest Expense

55

0.1

5

Capital expenditures

130

0.05

6

Cost of Goods Sold (COGS)

450

Change in working capital

62

Sales Revenue

800

market return

0.12

Cost of debt

0.09

beta

1.5

risk-free rate

0.05

The following information is given about Anzac Corporation. Using the information, estimate the value of the company using free cash flow method (FCFF). The free cash flow will grow at the following rates for the following five years, respectively: 80, 90, 40, 20, 10, and 5 percent, thereafter.

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