2003 2004 2005 2006

Sales $36,312 $34,984 $35,252 $45,116

Cost of goods sold 25,924 24,200 24,300 31,580
Selling, general, and administrative 2,020 2,100 2,252 2,628
Other income—net 92 572 108 72
EBIT $8,460 $9,256 $8,808 $10,980
Tax(40%) $3,384 $3,702 $3,523 $4,392
NOPAT $5,076 $5,554 $5,285 $6,588
Depreciation $784 $924 $1,088 $1,280
Net Operation CF $5,860 $6,478 $6,373 $7,868
Change in NWC
Change in Net Capital Expenditure
FCF
Year to FCF
NPV

VALUATION
PV(FCF(2011-2020)) 21,562
PV(CFCF)** 129587.48
Plus excess assets:
Cash & Equiv. 1884
ST Investments 1768
LT Investments 0
Value of firm 154801.34
Shares Outstanding 2,440
Fair value per share 63.44
 2007 2008 2009 2010 2011 2012
$49,364 $59,600 $66,000 $73,200 $81,200 $90,000
37,044 43,816 48,750 54,104 59,958 66,200
2,936 3,612 4,124 4,564 5,052 5,692
228 240 264 288 320 352
$9,612 $12,412 $13,390 $14,820 $16,510 $18,460
$3,845 $4,965 $5,356 $5,928 $6,604 $7,384
$5,767 $7,447 $8,034 $8,892 $9,906 $11,076
$1,508 $1,660 $1,828 $2,012 $2,212 $2,432
$7,275 $9,107 $9,862 $10,904 $12,118 $13,508
3,491 2,184 2456 2729 3002
3,788 2,368 2664 2961 3257
$1,828 $5,310 $5,784 $6,428 $7,249
0 1 2 3 4
$1,828 4861.302 4847.7969 4932.30662 5092.2576
 FVC
Beta of security 1
Risk-free rate 4.52% (Ex 9)
Market risk premium 5.50% (Ex 9)
Cost of equity 10.02%
Cost of debt 6.32%
Tax rate 40%
D/V 0.127243
E/V 0.872757
WACC=Kd(1-T)*D/(D+E)+Ke*E/(D+E)
® WACC 9.23%

RSE
Beta of security 1.25
Risk-free rate 0.0452
Market risk premium 5.50%
Cost of equity 0.11395
Cost of debt 6.8%
Tax rate 40%
D/V 0.271389
E/V 0.728611
WACC=Kd(1-T)*D/(D+E)+Ke*E/(D+E)
® WACC 9.4%