What is your cost of equity?

What is your WACC?

What is the terminal value for year 5?

What is the PV of the terminal value?

What is the final company valuation?

Company A has the following: Debt 5,435,000 Equity 6,750,000 (Your student Interest expense number) Tax rate 21% Risk free rate 2% Beta 1.50 Market return 10.5% Expected 6.5% growth EBITDA year 0 50,000 D&A year 0 4,000 1,000 (- inflation Working capital (8.6%) yoy) 4,000 (+inflation Capex (8.6%) yoy) Perpetual 4% growth rate Company A has the following: Debt 5,435,000 Equity 6,750,000 (Your student Interest expense number) Tax rate 21% Risk free rate 2% Beta 1.50 Market return 10.5% Expected 6.5% growth EBITDA year 0 50,000 D&A year 0 4,000 1,000 (- inflation Working capital (8.6%) yoy) 4,000 (+inflation Capex (8.6%) yoy) Perpetual 4% growth rate