Inputs

Enter your
Enter your
Enter your
Enter your

after-tax operating earnings (EBIT (1-t)) in your terminal year =

free cashflow to firm in your terminal year =
perpetual growth rate=
cost of capital in perpetuity =

1035
750
4%
9.35%

Output
Your reinvestment rate in perpetuity is =
Your return on capital (equity) in perpetuity has to be =

27.54%
14.53%

Just for your edification

If your return on capital = cost of capital, your reinvestment rate would be

42.78%

! If you are doing an equity valuation, enter the net income

! If you are doing an equity valuation, enter the FCFE
! If you are doing an equity valuation, enter the cost of equity

! With equity valuation, return on equity = cost of equity