Question
tax rate 40% Growth rate 3% discount rate 10.32% 2015 2016 2017 2018 2019 EBIT $ 47,005 $ 53,037 $ 57,605 $ 61,687 $ 64,612
| tax rate | 40% | ||||||
| Growth rate | 3% | ||||||
| discount rate | 10.32% | 2015 | 2016 | 2017 | 2018 | 2019 | |
| EBIT | $ 47,005 | $ 53,037 | $ 57,605 | $ 61,687 | $ 64,612 | ||
| Depreciation | $ 9,587 | $ 9,781 | $ 10,643 | $ 11,406 | $ 11,954 | ||
| Changes in NWC | $ 4,567 | $ 2,649 | $ 9,805 | $ 8,687 | $ 6,233 | ||
| Capital Expenditures | $ 11,983 | $ 12,226 | $ 13,303 | $ 14,258 | $ 14,943 | ||
Your projections end in 2019, so you'll need to find a terminal value. Do this using the perpetuity method used in previous assignments. Assume a long-term free cash flow growth rate of 3%.
What is the enterprise value of this firm?
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Internet Fraud Casebook
Authors: Joseph T. Wells
1st Edition
0470643633, 9780470643631
