Group Number: 12

Name Roll number

Nanubala Anil Sai Sandeep Kumar 20PGP241
Munnam Thanuj Kumar 20PGP224
Sheik Julekha 20PGP206
Jami Sai Akhila 20PGP083
Shreyank Goud M 20PGP216
Variables 2019 2020 2021 2022 2023 2024 2025
Assets 11250 12166.875 13158.475 14230.891 15390.70867 16645.051 17658.735
Net Fixed assets 8437.5 9125.2 9868.9 10673.2 11543.0 12483.8 13244.1
Current assets 2812.5 3041.7188 3289.6188 3557.7228 3847.677168 4161.2629 4414.6838
Debt 3937.5 4258.4063 4605.4664 4980.8119 5386.748035 5825.768 6180.5573
Equity 6187.5 6691.7813 7237.1614 7826.9901 8464.889769 9154.7783 9712.3043
Current liabilities 1125 1216.6875 1315.8475 1423.0891 1539.070867 1664.5051 1765.8735
sales 17500 18926.3 20468.7 22136.9 23941.1 25892.3 27469.1
Operating expenses 13125 14194.688 15351.555 16602.706 17955.82678 19419.227 20601.858
Dep 2109.375 2281.2891 2467.2141 2668.292072 2885.7579 3120.9471
EBIT 4375 4731.5625 5117.1848 5534.2354 5985.275594 6473.0756 6867.2859
Int 346.5 374.73975 405.28104 438.31144 474.0338271 512.66758 543.88904
PBT 4028.5 4356.8228 4711.9038 5095.924 5511.241767 5960.408 6323.3968
Tax 1007.125 1089.2057 1177.976 1273.981 1377.810442 1490.102 1580.8492
PAT 3021.375 3267.6171 3533.9279 3821.943 4133.431325 4470.306 4742.5476
NWC 1687.5 1825.0313 1973.7713 2134.6337 2308.606301 2496.7577 2648.8103
Delta NWC 137.53125 148.74005 160.86236 173.9726431 188.15141 152.05254

1 2 3 5 4 6
FCFF 4098.8 4432.8 4794.1 5184.8
5607.4 5758.7
PV 3678.7 3570.7 3465.9 3364.2
3265.5 108042.7
Total valuation of the 80263.7 62918.673
1.0 2 3 4 5 6
FCFE 4138.6483 4475.9481 4840.7379 5235.258065 5661.9316 5705.5471
PV 3714.4573 3605.4439 3499.6298 3396.921243 3297.227 107045.91
62338.208
Total equity valuation 79851.887

Asset turnover ratio 1.55555556

cost of equity 11.42% cost of capital 108042.67
cost of debt 8.80% 62918.673
growth rate 1.0609
Industry information
Firm TA Sales D/E Beta Cost of debt
1 20000 25000 0.9 0.91 8.75
2 17500 22000 0.75 0.6 8.25
3 8000 14000 1 1.1 9.5
4 5000 9000 0.3 0.5 8
5 25000 33000 1.2 1.3 9.5
0.882 avg 8.8
modified b 0.76 8.8%

Additional information
1. Capital structure is expected to reamin the same
2. Asset turn over ratio is expected to reain constant and real growth rate is expected to be 3%
3. Expected infation for next five years is 5% and then a long term average of 3%
4. All other ratios remain constant
5. Dep: 25% and is already included in Operating expenses

6. Avg market return is 15% and that of 10 year govt bond is 6%

 Asset turnover ratio sales/assets
35% debt ratio through out the time period

Operating expenses to to
s find operating expenses of further years
Operating exp/sales 0.75

tax asumption 25%

s expected to be 3%

D/E 0.538461538461538
wd 0.35
we 0.65

weighted average cost of capital

WACC (Wd*kd*0.75)+(ke*we)
ke Rf+beta*(Rm-Rf) 12.84 11.42% sir got
kd 8.80%