Answer To: Hello, We have a midterm 2 next Wednesday, March 24th. The midterm will run from 2.10 to 5.00 (so...
Himanshu answered on Mar 24 2021
FCFF
Revenues historical 200,000,000
growth rate of revenues 3%
gross profit margin 45%
depreciation 2% of revenues
SG&A 24% of revenues
Capital Expenditures 125% of depreciation
Additional Cap Ex 15% of incremental revenues
Working Capital Investment 8% of incremental revenues
marginal tax rate on EBIT 35%
FCFF
Revenues 206,000,000
Gross profit 92,700,000
SG&A 49,440,000
EBITDA 43,260,000
Depreciation 4,120,000
EBIT 39,140,000
Tax 13,699,000
Operating income after tax 25,441,000
Adjustments:
Depreciation 4,120,000
Capex 5,150,000
Additional Capex 900,000
Working Capital 480,000
FCFF 23,031,000
CCM and buildup
FCFE 1 2.5 million
growth 3%
risk free rate 4.50%
equity risk premium 5%
size...