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Risk free rate 2.

0% Sum of the present values of FCF (Years 1 to 5)


Market risk premium 7.0%
Beta 0.9 Terminal value
Cost of equity 8.3%
Enterprise Value
Cost of debt 4.0%
Corporate tax rate 30% Net debt
After tax cost of debt 2.8%
Equity value
WACC 7.9%

Pertuity growth rate 3.0%

Year 1 2 3 4 5
FCF 100 110 120 130 140
Present value of FCF 92.7 94.6 95.6 96.0 95.9
475

2032

2507

200

2307

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