Some algebra. We want to understand the relationship between sales growth rates (s) and project FCF growth rates (g). This is useful to think about, because in our spreadsheet models we often need an estimate of g but 8 when we look for analyst forecasts they often just apply to s. We consider a hypothetical firm in which there are Sales, COGS, Depreciation, Taxes, ONWC, and CAPEX occurring each year. You know that sales growth is constant and equals s. You further know that in any given year, COGS/Sales=c, the tax rate is p, the ratio of OWNW to Sales is n, and CAPEX=Depreciation, and Depreciation/Sales=d. I want you derive the following (either in a word, excel, or simply upload a picture of a piece of paper): FCF in any given year t can be written as Sales(t)*((1-C- d)(1-p)-s/(1+5)*n) Some algebra. We want to understand the relationship between sales growth rates (s) and project FCF growth rates (g). This is useful to think about, because in our spreadsheet models we often need an estimate of g but 8 when we look for analyst forecasts they often just apply to s. We consider a hypothetical firm in which there are Sales, COGS, Depreciation, Taxes, ONWC, and CAPEX occurring each year. You know that sales growth is constant and equals s. You further know that in any given year, COGS/Sales=c, the tax rate is p, the ratio of OWNW to Sales is n, and CAPEX=Depreciation, and Depreciation/Sales=d. I want you derive the following (either in a word, excel, or simply upload a picture of a piece of paper): FCF in any given year t can be written as Sales(t)*((1-C- d)(1-p)-s/(1+5)*n)