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215204430.xls.ms_office

Two-Stage FCFF Model Enter the following inputs for the two-stage FCFE ModelCurr ent In puts

Current EBIT = $391.38 (in $) ROC =

Current Tax Rate = 36.00% (in percent) Reinvestment

Current Depreciation = $461.00 (in $) Margin =

Current Capital Spending = $475.00 (in $)

Current Revenues = $13,046.00 (in $)

Working Capital as % of Revenues= 15.00% (in percent)

H igh Growth Peri od

Length of high-growth period (n) = 5 (Number of periods)

Growth rate during period (g) = 6.00% (in percent)

Cost of Equity during period = 12.33% (in percent)

After-tax Cost of Debt = 5.00% (in percent)

Debt Ratio (D / (D + E)) = 10.00% (in percent)

Stable Growth Peri od

Growth rate in steady state = 5.00% (in percent)

Cost of Equity in steady state = 11.50% (in percent)


Debt Ratio (D / (D + E)) = 10.00% (in percent)Is capital spending offset by depreciation in steady state ? No (Yes or No)

If no, enter capital expenditures as % of depreciation 110% (in percent)

OutputPV of FCFF

PV of Terminal Value =

Value of Firm =

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215204430.xls.ms_office

7.34%

50%

3.00%

Cost of Capital = 11.59%

Year FCFF Terminal Value PV

1 $133.26 $118.68

2 $141.25 $112.03

3 $149.73 $105.76

4 $158.71 $99.84

5 $168.24 $2,717.35 $1,690.53

Terminal Year $156.10 $2,126.83

New cost of capital = 10.75%

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Two-Stage FCFF Model Enter the following inputs for the two-stage FCFE ModelCurr ent Inputs

Current EBIT = $521.84 (in $) ROC =

Current Tax Rate = 36.00% (in percent) Reinvestment

Current Depreciation = $461.00 (in $) Margin =

Current Capital Spending = $475.00 (in $)

Current Revenues = $13,046.00 (in $)

Working Capital as % of Revenues= 15.00% (in percent)

H igh Growth Peri od

Length of high-growth period (n) = 5 (Number of periods)

Growth rate during period (g) = 10.00% (in percent)

Cost of Equity during period = 12.88% (in percent)



Stable Growth Per iod

Growth rate in steady state = 5.00% (in percent)

Cost of Equity in steady state = 11.50% (in percent)



Is capital spending offset by depreciation in steady state ? (Yes or No)If no, enter capital expenditures as % of depreciation (in percent)

OutputPV of FCFF

PV of Terminal Value =

Value of Firm =


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7.34%

50%

4.00%

Cost of Capital = 11.35%

Year FCFF Terminal Value PV

1 $156.29 $139.18

2 $171.91 $136.35

3 $189.11 $133.57

4 $208.02 $130.85

5 $228.82 $8,739.55 $4,896.00

Terminal Year $156.50 $5,435.96

New cost of capital = 10.75%

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