fcffst - FCFF Stable Model FCFF STABLE GROWTH MODEL This...

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FCFF Stable Model Page FCFF STABLE GROWTH MODEL This model is designed to value a stable firm on the basis of free cashflows to firm. Assumptions in the model: 1. The firm is in steady state and will grow at a stable rate forever. 2. The firm's leverage is known and constant. User defined inputs The user has to define the following inputs to the model: 1. Current EBIT and tax rate 2. Capital Spending and Depreciation 3. Change in working capital 4. Debt ratio 5. Cost of Equity or Inputs to the CAPM (Beta, Riskfree rate, Risk Premium) and Cost of Debt 6. Expected Growth Rate in free cashflows to firm forever.
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FCFF Stable Model Page Please enter inputs to the model: Current EBIT $1,535.00 (in currency) Current tax rate = 36% Capital Expenditures $550.00 (in currency) Depreciation = $400.00 (in currency) Change in Working Capital = $160.00 (in currency) If negative, enter zero. Do you want to change the capital expenditure/depreciation ratio? Yes (Yes or No) If so, enter capital expenditures as a percent of depreciation 125% Debt ratio = 29.97% ( in percent) Are you directly entering the cost of equity? (Yes or No) No If yes, enter cost of equity = (in percent) If no, enter the inputs for the CAPM
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