2015 2016

Sales 14833.00 29995.00

Sales growth
Operating Margin (EBIT/Sales) 50.00%
Depreciation 3,411
Capital Expenditure 1675
Investment in NWC (% of additional sales amount) 20%

Year 0 1
Sales 14,833.00 29,995.00
EBIT 14,997.50
After-tax Operating Income 9,748.38
Add: Depreciation 3,411.00
Less: Investment in Net Working Capital 3,032.40
Less: Investment in Fixed Assets 1,675.00
FCFF 8,451.98

Discounted Value of FCFF $7,344.12

FCFF Valuation
PV of FCFF (year 1-9) $66,816.46
PV of terminal value $35,372.24
Value of firm's operating assets $102,188.71
Add: cash 3,839.00
Less: Debt 37,490.00
Value of Common Equity 68537.71
Fair Price per share 32.64

Calculation of WACC
MV Weight
Equity 48,132.00 0.5827894756
Debt 34,457.00 0.4172105244
Total Market Value of Long-term Capital 82,589.00 1.00

Number of Shares (millions) 2,100

Beta (historical) 1.15
Market Price (December 31, 2015) 22.92
Interest rate on LT debt 12%
Tax rate 35%
Terminal growth rate 3%
Risk-free rate 11.50%
Market Premium 8%
Adjusted Beta 1.10
Cash 3839.00
Debt 37490
Sales 14,833.00
 2017 2018 2019 2020 2021 2022 2023
35844.00 38174.00
5.00% 5.00% 5.00% 5.00% 5.00%
50.00% 50.00% 48.00% 48.00% 48.00% 48.00% 36.00%
3,470 3,470 3,470 3,470 3,470 3,470 3,470
500 500 500 500 500 500 500
10% 10% 10% 10% 10% 5% 10%

2 3 4 5 6 7 8
35,844.00 38,174.00 40,082.70 42,086.84 44,191.18 46,400.74 48,720.77
17,922.00 19,087.00 19,239.70 20,201.68 21,211.76 22,272.35 17,539.48
11,649.30 12,406.55 12,505.80 13,131.09 13,787.65 14,477.03 11,400.66
3,470.00 3,470.00 3,470.00 3,470.00 3,470.00 3,470.00 3,470.00
584.90 233.00 190.87 200.41 210.43 110.48 232.00
500.00 500.00 500.00 500.00 500.00 500.00 500.00
14,034.40 15,143.55 15,284.93 15,900.68 16,547.21 17,336.55 14,138.66

$10,596.38 $9,935.12 $8,713.46 $7,876.34 $7,122.22 $6,483.88 $4,594.75

A-T Cost
20.300%
7.800%
15.085%
 2024

5.00%
36.00%
3,470
500
10%

9
51,156.81
18,416.45
11,970.69
3,470.00
243.60
500.00
14,697.09
125,264.11
$4,150.18
 2015 2016 2017 2018
Sales 14833.00 29995.00 35844.00 38174.00
Sales growth
Operating Margin (EBIT/Sales) 50.00% 50.00% 50.00%
Depreciation 3,411 3,470 3,470
Capital Expenditure 1675 500 500
Investment in NWC (% of additional s 20% 10% 10%

Year 0 1 2 3
Sales 14,833.00 29,995.00 35,844.00 38,174.00
EBIT 14,997.50 17,922.00 19,087.00
After-tax Operating Income 9,748.38 11,649.30 12,406.55
Add: Depreciation 3,411.00 3,470.00 3,470.00
Less: Investment in Net Working Capit 3,032.40 584.90 233.00
Less: Investment in Fixed Assets 1,675.00 500.00 500.00
FCFF 8,451.98 14,034.40 15,143.55

Discounted Value of FCFF $7,344.12 $10,596.38 $9,935.12

FCFF Valuation
PV of FCFF (year 1-9 $66,816.46 $66,816.46 $66,816.46 $66,816.46
PV of terminal value $35,372.24 $27,512.23 $29,760.20 $32,351.78
Value of firm's opera $102,188.71 $94,328.69 $96,576.67 $99,168.24
Add: cash 3,839.00 3,839.00 3,839.00 3,839.00
Less: Debt 37,490.00 37,490.00 37,490.00 37,490.00
Value of Common Eq 68537.71 60677.69 62925.67 65517.24
Fair Price per s 32.64 28.89 29.96 31.20

Calculation of WACC
MV Weight A-T Cost
Equity 48,132.00 0.5827894756 20.300%
Debt 34,457.00 0.4172105244 7.800%
Total Market Value of 82,589.00 1.00 15.085%

Number of Shares (mi 2,100

Beta (historical) 1.15
Market Price (Decem 22.92
Interest rate on LT 12%
Tax rate 35%
Terminal growth rat 3% 0% 1% 2%
Risk-free rate 11.50%
Market Premium 8%
Adjusted Beta 1.10
Cash 3839.00
Debt 37490
Sales 14,833.00
 2019 2020 2021 2022 2023

5.00% 5.00% 5.00% 5.00% 5.00%

48.00% 48.00% 48.00% 48.00% 36.00%
3,470 3,470 3,470 3,470 3,470
500 500 500 500 500
10% 10% 10% 5% 10%

4 5 6 7 8
40,082.70 42,086.84 44,191.18 46,400.74 48,720.77
19,239.70 20,201.68 21,211.76 22,272.35 17,539.48
12,505.80 13,131.09 13,787.65 14,477.03 11,400.66
3,470.00 3,470.00 3,470.00 3,470.00 3,470.00
190.87 200.41 210.43 110.48 232.00
500.00 500.00 500.00 500.00 500.00
15,284.93 15,900.68 16,547.21 17,336.55 14,138.66

$8,713.46 $7,876.34 $7,122.22 $6,483.88 $4,594.75

$66,816.46 $66,816.46
$38,937.68 $43,210.21
$105,754.15 $110,026.67
3,839.00 3,839.00
37,490.00 37,490.00
72103.15 76375.67
34.33 36.37

4% 5%
 2024

5.00%
36.00%
3,470
500
10%

9
51,156.81
18,416.45
11,970.69
3,470.00
243.60
500.00
14,697.09
125,264.11 97,429.35 105,390.13 114,567.69
$4,150.18
137,890.44 153,020.78
 2015 2016
Sales 14833.00 29995.00
Sales growth
Operating Margin (EBIT/Sales) 50.00%
Depreciation 3,411
Capital Expenditure 1675
Investment in NWC (% of additional sales amount) 20%

Year 0 1
Sales 14,833.00 29,995.00
EBIT 14,997.50
After-tax Operating Income 9,748.38
Add: Depreciation 3,411.00
Less: Investment in Net Working Capital 3,032.40
Less: Investment in Fixed Assets 1,675.00
FCFF 8,451.98

Discounted Value of FCFF (11.5%) $7,344.12

Discounted Value of FCFF (5%) $7,594.09
Discounted Value of FCFF (6%) $7,554.53
Discounted Value of FCFF (7%) $7,515.38
Discounted Value of FCFF (8%) $7,476.64
Discounted Value of FCFF (9%) $7,438.29
Discounted Value of FCFF (10%) $7,400.34
Discounted Value of FCFF (11%) $7,362.77
Discounted Value of FCFF (12%) $7,325.58
Discounted Value of FCFF (13%) $7,288.76
Discounted Value of FCFF (14%) $7,252.31
Discounted Value of FCFF (15%) $7,216.22

FCFF Valuation
PV of FCFF (year 1-9) $66,816.46 $77,697.90
PV of terminal value $35,372.24 $69,633.68
Value of firm's operating assets $102,188.71 $147,331.59
Add: cash 3,839.00
Less: Debt 37,490.00
Value of Common Equity 68537.71 113680.59
Fair Price per share 32.64 54.13

Calculation of WACC
MV Weight
Equity 48,132.00 0.5827894756
Debt 34,457.00 0.4172105244
Total Market Value of Long-term Capital 82,589.00 1.00

Number of Shares (millions) 2,100

Beta (historical) 1.15
Market Price (December 31, 2015) 22.92
Interest rate on LT debt 12%
Tax rate 35%
Terminal growth rate 3%
Risk-free rate 11.50% 5%
Market Premium 8%
Adjusted Beta 1.10
Cash 3839.00
Debt 37490
Sales 14,833.00
 2017 2018 2019 2020 2021
35844.00 38174.00
5.00% 5.00% 5.00%
50.00% 50.00% 48.00% 48.00% 48.00%
3,470 3,470 3,470 3,470 3,470
500 500 500 500 500
10% 10% 10% 10% 10%

2 3 4 5 6
35,844.00 38,174.00 40,082.70 42,086.84 44,191.18
17,922.00 19,087.00 19,239.70 20,201.68 21,211.76
11,649.30 12,406.55 12,505.80 13,131.09 13,787.65
3,470.00 3,470.00 3,470.00 3,470.00 3,470.00
584.90 233.00 190.87 200.41 210.43
500.00 500.00 500.00 500.00 500.00
14,034.40 15,143.55 15,284.93 15,900.68 16,547.21

$10,596.38 $9,935.12 $8,713.46 $7,876.34 $7,122.22

$11,329.98 $10,984.50 $9,961.71 $9,311.15 $8,706.23
$11,212.25 $10,813.74 $9,755.76 $9,071.15 $8,437.64
$11,096.34 $10,646.49 $9,555.10 $8,838.54 $8,178.67
$10,982.22 $10,482.68 $9,359.58 $8,613.05 $7,928.92
$10,869.86 $10,322.21 $9,169.04 $8,394.42 $7,688.03
$10,759.21 $10,165.00 $8,983.31 $8,182.42 $7,455.63
$10,650.24 $10,010.97 $8,802.27 $7,976.82 $7,231.39
$10,542.92 $9,860.03 $8,625.77 $7,777.38 $7,014.97
$10,437.21 $9,712.11 $8,453.66 $7,583.90 $6,806.08
$10,333.09 $9,567.14 $8,285.83 $7,396.16 $6,604.40
$10,230.51 $9,425.04 $8,122.14 $7,213.97 $6,409.67

$75,857.80 $74,082.09 $72,367.97 $70,712.79 $69,114.03

$62,075.93 $55,591.44 $49,985.98 $45,108.32 $40,839.07
$137,933.72 $129,673.53 $122,353.95 $115,821.12 $109,953.10

104282.72 96022.53 88702.95 82170.12 76302.10

49.66 45.73 42.24 39.13 36.33

A-T Cost
20.300% 13.800% 14.800% 15.800% 16.800%
7.800%
15.085% 11.297% 11.880% 12.462% 13.045%

6% 7% 8% 9% 10%
 2022 2023 2024

5.00% 5.00% 5.00%

48.00% 36.00% 36.00%
3,470 3,470 3,470
500 500 500
5% 10% 10%

7 8 9
46,400.74 48,720.77 51,156.81
22,272.35 17,539.48 18,416.45
14,477.03 11,400.66 11,970.69
3,470.00 3,470.00 3,470.00
110.48 232.00 243.60
500.00 500.00 500.00
17,336.55 14,138.66 14,697.09
125,264.11 182,457.31 170,482.10
$6,483.88 $4,594.75 $4,150.18
$8,195.69 $6,005.49 $5,609.05
$7,901.48 $5,759.74 $5,351.50
$7,619.27 $5,525.25 $5,107.03
$7,348.53 $5,301.44 $4,874.90
$7,088.72 $5,087.78 $4,654.43
$6,839.36 $4,883.76 $4,444.99
$6,599.98 $4,688.90 $4,245.97
$6,370.12 $4,502.74 $4,056.80
$6,149.36 $4,324.85 $3,876.94
$5,937.31 $4,154.83 $3,705.91
$5,733.57 $3,992.29 $3,543.21

$67,569.29 $66,076.29 $64,632.87 $63,236.97 $61,886.62

$37,082.76 $33,762.21 $30,814.38 $28,187.33 $25,837.91
$104,652.05 $99,838.50 $95,447.25 $91,424.30 $87,724.53

71001.05 66187.50 61796.25 57773.30 54073.53

33.81 31.52 29.43 27.51 25.75
17.800% 18.800% 19.800% 20.800% 21.800%

13.628% 14.211% 14.793% 15.376% 15.959%

11% 12% 13% 14% 15%

159,982.01 150,700.29 142,436.51 135,031.92 128,359.15
22.800% 23.800%

16.542% 17.125%
122,314.81 116,814.11 111,786.88 107,174.50