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Uwe Henschel is doing a valuation of TechnoSchaft on the basis of the following information:Year 0 sales per share = 2 5 . Sales growth

Uwe Henschel is doing a valuation of TechnoSchaft on the basis of the following information:Year 0 sales per share =25.Sales growth rate =20 percent annually for three years and 6 percent annually thereafter.Net profit margin =10 percent forever.Net investment in fixed capital (net of depreciation)=50 percent of the sales increase.Annual increase in working capital =20 percent of the sales increase.Debt financing =40 percent of the net investments in capital equipment and working capital.TechnoSchaft beta =1.20; the risk-free rate of return =7 percent; the equity risk premium =4.5 percent.Please show the future FCFE forcast and calculate the value of TechnoSchaft on the basis of the information given above.

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