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  • Base Year Information 2009: Pvoffcff@ 9.20% 538.69 540.17 541.65 543.14

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    Mrudul Dagli
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    The document provides financial information for HUL, an Indian household products company, for the year 2009. It states that HUL reported EBIT of Rs. 1200 lakh in 2004, with capital expenditures of Rs. 420 lakh and depreciation of Rs. 350 lakh in 2009. Revenues were Rs. 13,000 lakh in 2009 with working capital at 10% of revenues. The tax rate for the firm is 40% and cost of debt is 8%. The summary provides the key financial figures and sets up a discounted cash flow model to calculate the firm's value over multiple years based on the given growth rate, tax rate, and capital structure.

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    The document provides financial information for HUL, an Indian household products company, for the year 2009. It states that HUL reported EBIT of Rs. 1200 lakh in 2004, with capital expenditures of Rs. 420 lakh and depreciation of Rs. 350 lakh in 2009. Revenues were Rs. 13,000 lakh in 2009 with working capital at 10% of revenues. The tax rate for the firm is 40% and cost of debt is 8%. The summary provides the key financial figures and sets up a discounted cash flow model to calculate the firm's value over multiple years based on the given growth rate, tax rate, and capital structure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    26 views5 pages

    Base Year Information 2009: Pvoffcff@ 9.20% 538.69 540.17 541.65 543.14

    Uploaded by

    Mrudul Dagli
    The document provides financial information for HUL, an Indian household products company, for the year 2009. It states that HUL reported EBIT of Rs. 1200 lakh in 2004, with capital expenditures of Rs. 420 lakh and depreciation of Rs. 350 lakh in 2009. Revenues were Rs. 13,000 lakh in 2009 with working capital at 10% of revenues. The tax rate for the firm is 40% and cost of debt is 8%. The summary provides the key financial figures and sets up a discounted cash flow model to calculate the firm's value over multiple years based on the given growth rate, tax rate, and capital structure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    HUL, a leader in the development and manufacture of household products in India,

    reported EBIT of Rs. 1200 lakh in 2004, prior to depreciation of Rs. 350 lakh. The capital
    expenditure in 2009 amounted to Rs. 420 lakh and working capital was 10% of the
    revenues which were Rs. 13000 lakh. The firm has outstanding debt yielding a pre-tax
    interest rate of 8%. The tax rate for the firm is 40% and the Treasury bill rate is
    Solution:

    Base year information


    EBIT
    Capital Expenditure
    Depreciation
    Revenues
    WC as a % of revenue
    Tax rate
    Expected growth rate
    Cost of Debt
    Cost of Equity
    Debt ratio

    Revenues
    WC
    Changes in WC

    2009
    1200
    420
    350
    13000
    10%
    40%
    9.50%
    8.0%
    13.6%
    50%

    lakh
    lakh
    lakh
    lakh

    Estimation of Change in Working Capital


    2009
    2010
    2011
    2012
    2013
    13000
    14235
    15587.33 17068.12 18689.59
    1300
    1423.5
    1558.733 1706.812 1868.959
    123.5
    135.2325 148.0796 162.1471
    2009

    EBIT
    - Tax rate
    - Capex - Depreciation
    - Change in WC
    FCFF
    PV of FCFF @
    9.20%
    Cost of Capital
    formula

    9.2%

    Value pf firm

    2708.29

    2010
    1314.00
    -525.60
    -76.65
    -123.50
    588.25

    2011
    1438.83
    -575.53
    -83.93
    -135.23
    644.13

    2012
    1575.52
    -630.21
    -91.91
    -148.08
    705.33

    2013
    1725.19
    -690.08
    -100.64
    -162.15
    772.33

    538.69

    540.17

    541.65

    543.14

    doubt
    need to fil info

    2014
    20465.1
    2046.51
    177.5511
    2014
    1889.09
    -755.63
    -110.20
    -177.55
    845.70
    544.63

    Base year information


    EBIT
    Capital Expenditure
    Depreciation
    Revenues
    WC as a % of revenue
    Tax rate
    Expected growth rate
    Cost of Debt
    Cost of Equity
    Debt ratio

    2011
    1200
    420
    350
    13000
    10%
    40%
    9.50%
    8%
    13.6%
    50%

    lakh
    lakh
    lakh
    lakh

    Estimation of Change in Working Capital

    Revenues
    WC
    Changes in WC

    EBIT
    - Tax rate
    - (Capex - Depreciation)
    - Change in WC
    FCFF
    PV of FCFF @
    9.20%
    8.55%

    2011
    13000.00
    1300.00

    2012
    14235.00
    1423.50
    123.50

    9.50%
    2013
    2014
    2015
    15587.33 17068.12 18689.59
    1558.73 1706.81 1868.96
    135.23
    148.08
    162.15

    2011

    2012
    1314.00
    -525.60
    -76.65
    -123.50
    588.25

    2013
    1438.83
    -575.53
    -83.93
    -135.23
    644.13

    2014
    1575.52
    -630.21
    -91.91
    -148.08
    705.33

    2015
    1725.19
    -690.08
    -100.64
    -162.15
    772.33

    538.69

    540.17

    541.65

    543.14

    Cost of Capital
    formula

    9.2%

    Terminal Value

    #########

    Value of firm

    #########

    538.69

    540.17

    541.65

    543.14

    7%
    7%
    10%
    25%

    11%
    9%
    8%
    75%

    7%
    2016
    2017
    2018
    2019
    2020
    2021
    20465.10 22409.29 24538.17 26869.30 29421.88 32216.96
    2046.51 2240.93 2453.82 2686.93 2942.19 3221.70
    177.55
    194.42
    212.89
    233.11
    255.26
    279.51

    2022
    35760.82
    3576.08
    32184.74

    2016
    1889.09
    -755.63
    -110.20
    -177.55
    845.70

    2017
    (Terminal Value)
    2940.99
    EBIT is taken over 5th year
    -1176.40
    -171.56
    -32184.74
    -30591.71

    2017
    2021.32
    -808.53
    -117.91
    -194.42
    900.46

    2018
    2162.82
    -865.13
    -126.16
    -212.89
    958.64

    2019
    2314.21
    -925.68
    -135.00
    -233.11
    1020.42

    2020
    2476.21
    -990.48
    -144.45
    -255.26
    1086.02

    2021
    2649.54
    -1059.82
    -154.56
    -279.51
    1155.66

    900.46

    883.13

    866.00

    849.08

    832.36

    544.63

    -1271038.76

    8.55%

    544.63

    (Terminal Year)

    Power ka thin

    8.55%

    doubt
    need to fil info

    EBIT is taken over 5th year

    Power ka thin

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