, 2010A 2011A 2012A 2013P
Period 1
Total Revenues
EBITDA
EBIT
Tax rate 40.0%
EBIAT
Depreciation & Amortization
Accounts receivable
Inventories
Prepaid expenses
Accounts payable
Accrued expenses
Capital expenditures
Unlevered free cash flows
Discount Rate (WACC)
Present value of free cash flows
Sum of present values of FCFs
Terminal Value
Growth in perpetuity method:
Long term growth rate 4.0%
WACC
Free cash flow (t+1)
Terminal Value
Present Value of Terminal Value
WACC
Share Price
Diluted Shares Outstanding
Cost of Debt 5.2%
Tax Rate 40.0%
After-tax Cost of Debt
Cost of Equity 15.0%
Total Debt ($)
Total Equity ($)
Total Capital
Debt Weighting
Equity Weighting
WACC =
Enterprise Value to Equity Value
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