Valuation Exercise 1-18-11

Valuation Exercise 1-18-11 - Revenues COGS SGA Expenses...

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Year 1 2 3 4 Revenues 800 860 925 950 COGS 720 774 786.3 807.5 SGA Expenses 48 51.6 50.9 52.3 EBIT 32 34.4 87.8 90.2 Interest Exp 24 24 24 24 Profit before tax 8 10.4 63.8 66.2 Taxes @ 34% 2.72 3.54 21.69 22.51 Net Income 5.28 6.86 42.11 43.69 EBIAT 21.12 22.7 57.95 59.53 Add Dep 90 93 98 105 Sub Capital Exp -95 -96 -105 -115 Add Inv in NWC -16 -17.2 -18.5 -19 Add Excess Cash 8 0 0 0 Add Proceeds from Asset sales 3 1 0 0 Free Cash flows 11.12 3.5 32.45 30.53 Terminal Value PV of year 1-5 CF 100.56 PV of terminal value 515.04 Total PV (discounted at Ra) 615.6 Debt 300 300 300 300 Interest Expense 24 24 24 24 Tax Savings 8.16 8.16 8.16 8.16 Terminal Value Profit before tax 8 10.4 63.8 66.2 nols used 8 10.4 63.8 57.7 cumulative nols used 8 18.4 82.3 140 reduction in taxes paid 2.72 3.54 21.69 19.62 total present value (discounted at Re) 31.4 Free cash flows generated by the business 615.3 Cash flows from interest tax shields 93.39 31.4 Total 740.09 Cash flows from using new operating loss carryforwards (NOLs)
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5 1020 0.03 Growth 816 0.12 Ra 40.8 163.2 24 139.2 47.33 91.87 107.71 112 -120 -20.4 0 0 79.31 PV future 9.93 3.13 23.1 19.4 45 907.68 300 24 8.16 93.39 139.2 0 140 0
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Year 1 2 3 4 Revenues 800 860 925 950 COGS 720 774 786.3 807.5 SGA Expenses 48 51.6 50.9 52.3 EBIT 32 34.4 87.8 90.2 Interest Exp 24.1 24.5 23.4 20.3 Profit before tax 7.9 9.9 64.4 69.9 Taxes @ 34% 0 0 0 4.2 Net Income 7.9 9.9 64.4 65.7
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Valuation Exercise 1-18-11 - Revenues COGS SGA Expenses...

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