Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Note: Taka is the currency unit and your answer should be in taka

Transcribed Image Text:Use Microsoft Excel to estimate the value per share with FCFF method.
Fixed Assets (Actual 2020) Taka =1011063
(Actual 2020) Taka 4580,000 = sales
Cash Operating Cost 80% of Sales
Depreciation 10% of Fixed Asset
Sales growth rate 10%, 8%, 6%, 5% and 5% for Year 1 through Year 5 respectively. Tax rate 25%
Operating working capital 6% of sales
Volume of Debt Taka 650,000
Number of Common Shares 220,000
Terminal Growth rate of FCFF 4%.
WACC 10%
The firm is running in full capacity.
Make forecasting for 5 years.
(Keep 2 digits after decimal)
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