use the following information to develop a spreadsheet model that will calculate the free cash flows and the value of the equity for the company. cost of capital 12% most recent year's sales $1000 nonoperating assets $100 interest-bearing debt $250 operating profit margin 12% working capital/sales 35% fixed assets/sales 20% noninterest-bearing current liabilities/sales 10% rax rate 40% forecasted sales growth years 1-2 12% years 3-5 8% years 6-∞ 4% calculate the value of the firm and the value of the equity in the firm using DCF analysis.
use the following information to develop a spreadsheet model that will calculate the
cost of capital 12%
most recent year's sales $1000
nonoperating assets $100
interest-bearing debt $250
operating profit margin 12%
working capital/sales 35%
fixed assets/sales 20%
noninterest-bearing
current liabilities/sales 10%
rax rate 40%
years 1-2 12%
years 3-5 8%
years 6-∞ 4%
calculate the value of the firm and the value of the equity in the firm using DCF analysis.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images