2008 2009

EBIT 100 120

Depreciation 30 40
Increase in deferred taxes 2 3
Cap Ex 92 63
NWC -5 -5

Tax Rate 38%

WACC 11%
Net Debt 2008 650
Expected to grow to by 2011 820
Interest rate on debt 8.50%
Share Outstanding 35
2010 2011 2012
150 190 195.7
50 55 100
4 4 4.12
64 69 100
15 15 15
 0 1
Sales 0 5000
Beta (Asset) 1 EBIT 2000
Risk free Rate 10% Depreciation 500
Risk Premium 8% Cap Ex 1000
D/V 40% Working Capital 0 1000
E/V 60%

EBIT Margin 40% FCFF -300

Depreciation 10%
Growth 0%
Tax Rate 40%

FV -261
Calculation for WACC FV 7388

Beta 1.4 Growth

0% 7388
Ke 21.20% 1% 7911
2% 8514
WACC 15.12% 3% 9217
4% 10046
5% 11038
 2 3 4 5
5000 5000 5000 5000
2000 2000 2000 2000
500 500 500 500
500 500 500 500
0 0 0 0

2200 1200 1200 1200

TV
7937

1660 787 683 4519

Beta (Asset) 1
Risk free Rate 8% 6 months ago 9.25%
Risk Premium 6%
D/V 35%
E/V 65%

EBIT Margin 40%

Depreciation 10%
Short Term EBIT Growth 10%
Long Term Growth 2%
Tax Rate 45%

Calculation for WACC

Beta 1.366666667

Ke 16.35%

WACC 12.20%
 -2 -1 0
Sales 7438016.529 8181818.182 9000000
COGS 3338000 3681000 4000000

Dep 750000 750000 750000

Interest 230000 450000 500000

EBIT 3350016.529 3750818.182 4250000 4675000 5142500

Beta (Asset) 1.2
Risk free Rate 5%
Risk Premium 7%
D/V 35%
E/V 65%
EBIT
EBIT Margin 40% Dep
Depreciation 10% Capex
Short Term EBIT Growth 5% change in NWC
Long Term Growth 5%
Tax Rate 40%
D/V
E/V
Calculation for WACC
Debt Beta
Beta 2.34

Ke 21.38% FCFF

WACC 16.82%
PV

FV
 1 2 3 4 5
100000 105000 110250 115763 121551
50000 50000 50000 50000 50000
60000 60000 60000 60000 60000
10000 10000 10000 10000 10000

61% 35% 22% 15% 13%

39% 65% 79% 85% 87%

0.4 0.35 0.3 0.25 0.2

80000 85000 90250 95763 101551

TV
902412
68483.82797 62289.52328 56616.280284 51426.579347 461538.52368

700354.7346