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0 1 2
revenue 20000 24000
EBIT 2000 3600
% on Rev 10% 15%
INT -576 -616
EBT 1424 2984
Tax 498.4 1044.4
% of EBT 35% 35%
Net Earnings 925.6 1939.6
APV (@Ku)
0 1 2
FCF 1300 1140
terminal value
Tax Shield 201.6 215.6
Tx shld(1-6) 957.21338 Pv of Tax shield 180 171.875
Tx shld(6-) 1130.42069 Pv of FCF@Ku $8,883.17
PV of Terminal value 19126.33809
enterprice value $30,097.14
Debt 9000
Eq value $21,097.14
ECF (@Ke)
Cash flow to equity 1556.6 1489.6
Terminal value
Total cash flow 1556.6 1489.6
Equity value $21,096.33
EVA (@WACC)
NOPAT 0 1300 2340
Inevstment 12000 12000 13200
WACC 11.33% 11.33%
ROIC 10.83% 19.50%
EVA=(WACC-ROIC)*INV -59.6288 980.3712
EVA=NOPAT-INV*WACC -59.6288 980.3712
-53.560406 790.9811366
PV of EVA @WACC $6,249.29
Pv of Terminal Value 11848.61824
Initial capital 12000
enterprice value $30,097.91
Debt 9000
Eq Value $21,097.91
EVA (@Ku)
NOPAT 0 1300 2340
Inevstment 12000 12000 13200
Cost of equity unlevered 12.00% 12.00%
ROIC 10.83% 19.50%
EVA=(Ku-ROIC)*INV -140 900
EVA=NOPAT-INV*Ku -140 900
-125 717.4744898
PV of EVA @Ku $5,710.71
Pv of Terminal Value 10298.79743
Initial capital 12000
Pv of Tax shield(yr 1-6) 957.2133803
Pv of Tax shield(yr aft 6) 1130.420689
enterprice value $30,097.14
Debt 9000
Eq Value $21,097.14
SVA 0 1 2
NOPAT 0 1300 2340
change in NOPAT 1040
change in NOPAT/WACC 9178.975909
(chnge in NOPAT/WACC)/
(1+WACC)^(t-1) 8244.818217
Investment -1200
PV of Investment -968.1816071
SVA 7276.63661
cumulated SVA 7276.63661
Baseline value 11474
enterprice value 30097.7021
Debt 9000
Eq value 21097.7021
CCF 0 1 2
equity cash flow 1556.6 1489.6
terminal value
total eq cash flow 1556.6 1489.6
Interest expanse 576 616
change in debt -631 -750
terminal value of debt
total debt cash flow -55 -134
total cash flow 1501.6 1355.6
Pre Tax WACC 12% 12%
3 4 5 6
1608 2678.4 2946.24 4530.24
37752 2231.25
232.4 248.15 258.3 267.75 1130.4207
165.4177296 157.7038112 146.5663568 135.6504827
3 4 5 6
2808 4118.4 4530.24 4530.24
468 1310.4 411.84 0
4130.539159 11565.50964 3634.87446 0
3 4 5 6
1872.4 2671.55 2891.54 4032.99
28026.33773
1872.4 2671.55 2891.54 32059.32773
664 709 738 765
-696 -454 -425 0
11956
-32 255 313 12721
1840.4 2926.55 3204.54 44780.32773
12% 12% 12% 12%
6969.6 6969.6
-2439.36 -2439.36
4530.24 4530.24
-1584 0
2946.24 4530.24
-164 -23
57.4 8.05
2839.64 4515.29
35% 35%
0 0
4.00% 4.00%
4% 4%
8% 8%
1 1
12.00% 12.00%
17424 17424
4530.24 4530.24
0.26 0.26
12.00%
4.00%
587
2946.24 4530.24
2421.595 3580.314
37752 191.6667
23
57.4 8.05
47.17862 6.362032
0 1 2 3 4 5 6
Debt outstanding 38.4 38.4 38.4 38.4 38.4 38.4 25.6
15% Interest @15% 5.76 5.76 5.76 5.76 5.76 5.76
EBIT 11.5 11.5 11.5 11.5 11.5 11.5 11.5
Interest 0 5.76 5.76 5.76 5.76 5.76 5.76
PBT 11.5 5.74 5.74 5.74 5.74 5.74 5.74
Tax 4.025 2.009 2.009 2.009 2.009 2.009 2.009
PAT 7.475 3.731 3.731 3.731 3.731 3.731 3.731
plus Interest 0 5.76 5.76 5.76 5.76 5.76 5.76
plus Depreciation 8 8 8 8 8 8 8
Less Capital charges 1 1 1 1 1 1 1
CCF 14.475 16.491 16.491 16.491 16.491 16.491 16.491
17% CCF @ pre Tax WACC -64 14.09487 12.0469 10.29649 8.800423 7.521729 6.428828
NPV 4.773662
7 8 0 1 2 3 4
12.8 0 Debt outstanding 38.4 38.4 38.4 38.4
3.84 1.92 Interest @15% 5.76 5.76 5.76 5.76
11.5 11.5 Principal repayment 0 0 0 0 0
3.84 1.92 Loan at the end 38.4 38.4 38.4 38.4 38.4
7.66 9.58 Interest Tax Shield 2.016 2.016 2.016 2.016
2.681 3.353 PV of ITS@15% 1.753043 1.524386 1.325553 1.152655
4.979 6.227 PV of ITS@17% 1.723077 1.472715 1.258731 1.075838
3.84 1.92
8 8
1 1
15.819 15.147
5.270818 4.313599
5 6 7 8
38.4 25.6 12.8 0
5.76 5.76 3.84 1.92
0 12.8 12.8 12.8
38.4 25.6 12.8 0
2.016 2.016 1.344 0.672
1.002308 0.871572 0.505259 0.219678 8.354454
0.91952 0.785915 0.447815 0.191374 7.874985