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Market Assumptions Cal. Year Year Gr. Rate Equity Assumtions
Market Assumptions Cal. Year Year Gr. Rate Equity Assumtions
Market Assumptions Cal. Year Year Gr. Rate Equity Assumtions
Market Assumptions
Riskfree rate
Market Risk Premium
3.50%
5.50%
Equity Assumtions
Beta
Cost of Equity
MV of Equity est
1
9.00%
2000
Debt assumptions
Pre-Tax Cost of Debt
Effective Tax Rate
After-Tax Cost of Debt
MV of Debt est
4.50%
30%
3%
200
Firm Assumptions
Firm Value est
Debt-to-MV Ratio
WACC
Initial Cash Flow
Long-Term(Terminal) Growth Rate
2200
9.09%
8.47%
100
3%
FCF
Term Val
Total
100
100
110
110
121
121
133.1
133.1
146.41
146.41
161.051
161.051
177.1561 3336.9553 3514.1114001
PV
101.41222814
102.84440015
104.29679771
105.76970643
107.26341598
2157.7511777
CAPM model
(1-T)*PreTax_Cost of debt