The Statement of financial performance and financial position of Hitech Limited for three years are given below:

Statement of Financial Performance

Rupees in million

Y-1Y-2 Y-3

Net Sales3,5004,0004,600Income from marketable securities -100150Non-operating income-50100

Total Income3,5004,1504,850

Cost of Sales2,0002,3002,700Selling and Admin Expenses450500550Depreciation200250300Interest expense200240280

Total Costs and Expenses2,8503,2903,830

Profit before tax650860 1,020

Provision for taxation200260320

Profit after tax450600700

Dividend200 300400

Retained Earnings250300300

Statement of Financial Position

Y-1Y-2 Y-3

Equity Capital1,3001,5001,500 Reserves and Funds 9001,2001,500 Debt1,5001,8002,100

Total3,7004,5005,100

Non-Current Assets2,5003,0003,250 Investments6009001,000Current Assets600600850

Total3,7004,5005,100

The tax rate for Hitech Ltd is 40%. During year 2 the firm made a right issue of PKR 200 million at par.

1.Calculate the following for years 2 and 3

a.EBIT

b.NOPLAT

c.Net Investment

d.Free cash flow to the firm

2.Give the break-up of the financing flow for year 2 and 3.

3.Calculate the following key drivers of FCF for year 2 and 3.

a.Invested capital

b.ROIC

c.Growth rate