PART1

YEAR 0 YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

NET INCOME 150.00 165.00 181.50 199.65 219.62 241.58

Reinvestment -130 -148.5 -169.4 -192.995 -219.615
FCFF 150.00 35.00 33.00 30.25 26.62 21.96

BV of Equity 750 880 1028.5 1197.9 1390.895 1610.51

Risk Adjusted assets 5000 5500 6050 6655 7320.5 8052.55

Regulatory Capital
Requirement 15.00% 16% 17% 18% 19% 20%
anuual increment 1.00%
Growth rate(for risk adjusted) 10% 10% 10% 10% 10%

PART 2
9% Cost of Equity 9%
(Mature Period)
ROE 15%
(Mature Period)
3% Growth rate 3%

reinvetment
20.0%
TV 3317.651

PART 3
Cost of Equ 12%

No. of shar 50
FCFE 35.00 33.00 30.25 26.62 21.96
PV OF FCFE 108.46778659454 31.25 26.3074 21.53135 16.91749 12.46154
DISCOUNTING FACTOR 0.89 0.80 0.71 0.64 0.57

VALUE OF 1,990.99

VALUE
PER
SHARE 39.82
TERMINAL 1,882.52
248.82
(49.76) MONEY FUNDED FROM EQUITY FROM THE SAME
199.06

KE 12%
VALUE PER SHARE 50 Million

BV OF Equity 750

Growth rate 10%

PART 1
NORMALISED REVENUE 3600 BOOK VALUE OF EQUITY
NORMALISED NO PAT 10% BOOK VALUE OF DEBT
CASH BALANCE

NORMALISED EBIT (1-T) 360 CAPITAL EMPLOYED

RETURN ON CAPITAL EMP 18%

WACC 10%
GROWTH RATE (INITIAL) 6%

REINVESTMENT RATE 33.33%

YEAR1 YEAR2 YEAR3
EBIT (1-T) 381.6 404.496 428.7658
REINVESTMENT -127.2 -134.832 -142.9219
FCFF 254.4 269.664 285.8438

PART 2

GROWTH RATE -3%

ROCE 18%
REINVESTMENT RATE PER -16.67%

TVAT 3 3732.46091076923

PART 3
NO. OF SHARES 100 1 2
DR 0.909091 0.826446
FCFF 254.4 269.664
PV OF FCFF 231.2727 222.8628

PV OF FCFF 668.894244928625
PV OF TV 2804.25312604751

VALUE FOF FIRM 3473.14737097613

LESS DEBT 1000
ADD CASH 800

VALUE OF EQUITY 3273.14737097613

VALUE PER SHARE 32.7314737097613
 1800
1000
800

2000

YEAR4
415.9028
69.31713
485.2199

3
0.751315
285.8438
214.7587
 PHARMA COSMETICS
REVENUE 1500 1000
NO PAT 90 120
IC 900 1000
COE 11.64% 14.52%
COD 8.33% 8.33%
Debt to total
capital 50.00% 50.00%
growth rate 3% 3%
REINVRSTMENT
RATE 25.77% 20.66%
beta 1.44% 1.44%

PHARMA
PAT 90
RI (27.00)
FCFF 63.00

growth rate 3% 3%
ROCE 10% 12%
RI 30.0% 25.00%

VALUE OF
BUSINESS 1184.4331641286
-
Err:509 WACC 8.31900%
VALUE OF FIRM
LESS DEBT
ADD CASH

VALUE OF EQUITY
 RF 3%

RP 6%

TAX 40%

COSMETICS
120
(30.00)
90.00

1331.55792

9.75900% DEBT TO CAPITAL*KD(1-TAX)+)1-DETC)*KE

1200
0

131.557923
 DIRECTCOM MOVIE MAGIC
REVENUE 750 250
NO PAT 60 30
COST OF CAPITAL 9.00% 8.00%
RETURN ON CAPITAL 7.50% 6.00%
NET DEBT 100.00 50.00
growth rate 3% 3%

REINVRSTMENT RATE 40.0% 50.000%

DIRECTCOM MOVIE MAGIC

PAT 60 30
RI (24.00) (15.00)
FCFF 36.00 15.00

ROCE 7.50% 6.00%

VALUE OF FIRM 600 300

VALUE OF BUSINESS 900

LESS DEBT 100 50
ADD CASH

VALUE OF EQUITY 500 250

No. of share 125 50

VALUE PER SHARE 4 5

PART 3
VALUE OF FIRM 600 300 900
cost of capital 9% 8% 8.67%

Synergy benefit from 4 year 18

TV OF SYNERGY BENEFIT AT 3 207.6923
SynergyVALUE AT 0 161.857

PREMIUM PAID TO ACQUIRE MOVIE MAGIC 100

SynergyVALUE AT 0 161.857

NET BEBEFIT 61.85696

No. of share 125
BENEFIT PER SHARE 0.494856

VALUE PET SHARE 4.494856