Bob's Rawhide Company

EPS 3.5
Payout Ratio 50%
ROE 14%
Required Return 14%

A) Growth Rate 7.00%

B) Value without Growth 25.00

Value of Growth Opportunities -
Value of Stock 25.00

C) Comstant Growth DDM Value 25.00

 CMM
Free Cash Flow Forecast
2016 2017 2018
Depreciation 16,000 22,000 28,000
EBIT 130,000 150,000 165,000
Investment Aset Operasional 45,000 30,000 15,000
Net Operating Profit After Tax 84,500 97,500 107,250
Operating Cash Flow After Tax 100,500 119,500 135,250
Free Cash Flow 55,500 89,500 120,250

Tax Rate 35%

Current Market Value of Debt 250,000
Non-Operating Assets 66,000
FCF Growth Rate after 2018 7%
WACC 12%
Common Shares Outstanding 100,000

Value of Firm 2,038,153.70

Value of Equity 1,854,153.70
Per Share Value 18.54