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Sales growth 10% Costs of goods sold/Sales 25% Current assets/Sales 20% Net fixed assets/Sales 120% Current liabilities/Sales 15% Depreciation rate (of the average of the
Sales growth | 10% |
Costs of goods sold/Sales | 25% |
Current assets/Sales | 20% |
Net fixed assets/Sales | 120% |
Current liabilities/Sales | 15% |
Depreciation rate (of the average of the fixed assets at cost) | 5% |
Interest earned on cash balances | 5% |
Tax rate | 36% |
Cash balance every year | $ 130,000 |
Debt is the PLUG variable | |
No new common stock to be issued | |
Number of shares outstantding | 100,000
|
Free cash flow calculation | ||||||||||||||||||
Year | 0 | 1 | 2 | 3 | 4 | 5 | ||||||||||||
Profit after tax | ||||||||||||||||||
Add back depreciation | ||||||||||||||||||
Subtract increase in current assets | ||||||||||||||||||
Add back increase in current liabilities | ||||||||||||||||||
Subtract increase in fixed assets at cost | ||||||||||||||||||
Subtract after-tax interest on cash | ||||||||||||||||||
Free cash flow |
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