Beruflich Dokumente
Kultur Dokumente
00%
Asset Beta 1.5 Initial Investment 1500
(Asset Beta=Equity Beta for unlevered firm)
Risk Free Return (Rf) 5% Additional Debt 750
Market Risk Premium 7.20% Projected Cost of Capital 6.8
Equity Return 15.80% 25%
Rf+ Beta x Premium Total capital 1500
0 1 2
2002E 2003E
Initial Investment -1500
Sales 1200 2400
EBITD 180 360
Depreciation 200 225
EBIT -20 135
Tax @ 40% -8 54
EBIAT -12 81
CAPEX 300 300
Incremental
Investment in WC 0 0
3 4 5 5
2004E 2005E 2006E Terminal Value
0 1 2
2002E 2003E
Initial Investment -1500
Sales 1200 2400
EBITD 180 360
Depreciation 200 225
EBIT -20 135
Tax @ 40% -8 54
EBIAT -12 81
CAPEX 300 300
Incremental
Investment in WC 0 0
3 4 5 5
2004E 2005E 2006E Terminal Value
as 750*6.8 for perpetuity and divided bby 6.8 (its disc factor) / 6.8
terest gives me shield as the tax I save as it reduces gap btwn Income and expense
Discount Rate
Asset Beta 1.5
Debt Beta 0.25
Debt 25%
Cost of debt 6.80%
Beta of Equity 1.92 calculate thru formula in the question sheet
Beta of Assest = Beta of debt (D/E+D) + Beta of Equity (E/E+D)
Risk Free Return (Rf) 5%
Market Risk Premium 7.20%
Cost of Equity 18.80% growth 5%
Rf+ Beta x Premium
WACC 15.12%
0 1 2 3
2002E 2003E 2004E
Initial Investment -1500
Sales 1200 2400 3900
EBITD 180 360 585
Depreciation 200 225 250
EBIT -20 135 335
Tax @ 40% -8 54 134
EBIAT -12 81 201
CAPEX 300 300 300
Incremental
Investment in WC 0 0 0
4 5 5
2005E 2006E Terminal Value
5600 7500
840 1125
275 300
565 825
226 330
339 495
300 300
0 0
0 1 2 3
2001 2002E 2003E 2004E
Initial Investment -1500
Sales 1200 2400 3900
EBITD 180 360 585
Depreciation 200 225 250
EBIT -20 135 335
Tax @ 40% -8 54 134
EBIAT -12 81 201
CAPEX 300 300 300
Incremental
Investment in WC 0 0 0
GYAAAN
PV at year end 2969.97 3531.03 4058.92
25% debt 742.49 882.76 1014.73
Interest 50.489528 60.027544 69.001709
Tax sheild 20.195811 24.011018 27.600684
4 5 5
2005E 2006E Terminal Value
5600 7500
840 1125
275 300
565 825
226 330
339 495
300 300
0 0
GYAAAN
4521.63 4891.30 5135.869565217
1130.41 1222.83 1283.97
76.867767 83.152174 87.3097826087
30.747107 33.26087 34.92391304348
0 1 2 3
2001 2002E 2003E 2004E
Initial Investment -1500
Sales 1200 2400 3900
EBITD 180 360 585
Depreciation 200 225 250
EBIT -20 135 335
Tax @ 40% -8 54 134
EBIAT -12 81 201
CAPEX 300 300 300
Incremental
Investment in WC 0 0 0
4 5 5
2005E 2006E Terminal Value
5600 7500
840 1125
275 300
565 825
226 330
339 495
300 300
0 0
4891.30 5135.8696
1222.83 1283.97
76.87 83.15
40% 40%
30.75 33.26