00 2200 200 future firm conditions revenue

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Unformatted text preview: s a 35% tax rate, a 14% discount rate and they are projected to be worth $30M at the end of our valuation horizon of 5 years. What is the value of MMS today? Information given in the problem (all dollar figures in millions) Initial Firm Conditions Revenue COGS SG&A $ 35.00 $ 22.00 $ 2.00 Future Firm Conditions Revenue Growth 8% COGS Growth 6% SG&A Growth 2% Accounts Receivable Inventory Accounts Payable $ 4.00 $ 5.00 $ 3.00 One- time AR increase $ 2.00 Terminal Value $ 30.00 Terminal Value Year 5 Rates tax rate disc rate 35% 14% Capital Expenditure Intitial investment $ 20.00 Expected life 5 Calculations Annual depreciation during equipment life Time Working Capital Change in WC Time Revenue COGS SG&A Less Dep Opera...
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