Question
use the following information to develop a spreadsheet model that will calculate the free cash flows and the value of the equity for the company.
use the following information to develop a spreadsheet model that will calculate the free cash flows and the value of the equity for the company.
cost of capital 12%
most recent year's sales $1000
nonoperating assets $100
interest-bearing debt $250
operating profit margin 12%
working capital/sales 35%
fixed assets/sales 20%
noninterest-bearing
current liabilities/sales 10%
rax rate 40%
forecasted sales growth
years 1-2 12%
years 3-5 8%
years 6-∞ 4%
calculate the value of the firm and the value of the equity in the firm using DCF analysis.
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
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