You are asked to value the equity (i.e., shares) in Truckers Limited (hereafter Truckers).

Thevaluationdateis31March2020whentherewere150,000(numberin000)sharesonissue.

Truckers' sales for the year ended 31 March 2020 were $500,000 ($ amounts are in 000) and its consolidated (group) balance sheet as at 31 March 2020 ($ amounts are in 000) is summarized as follows:

Workingcapital $10,000

PPE andintangibleassets $440,000

Netoperatingassets $450,000

Net non-operating obligations (i.e., interestbearing debt) $200,000 Equity (i.e.,Shareholders'funds) $250,000

Totalcapital $450,000

You may assume Truckers' weighted average cost of capital (WACC) is 10 percent.

Assume that, following an analysis of Truckers' past performance, a SWOT analysis of its business, anticipated actions by its competitors, developments in the industry and discussions with senior management, you make the following assumptions about Truckers' forecasted performance over the five year forecast horizon period (the years ended 31 March 2021 to 31 March 2025, inclusive) and the terminal (or perpetuity) period starting with the year ended 31 March 2026:

Terminal Horizon period period 2021 2022 2023 2024 2025 2026 Sales growth 15.0% 13.0% 11.0% 9.0% 5.0% 4.0% EBIT % (NOPM) 17.0% 17.0% 16.8% 16.8% 16.6% 16.4% Company tax rate 28.0% 28.0% 28.0% 28.0% 28.0% 28.0% Working capital turnover (WCT) 40.0 40.0 41.0 41.0 42.0 42.0 PPE and intangible assets turnover (PPET) 1.30 1.31 1.32 1.33 1.34 1.34