The document projects cash flows for Nicholson File over 5 years from 1972-1976. It shows sales growing at 2% in 1972, 4% in 1973, and 6% each year after. EBIT is projected to be 12% of sales each year. The tax rate is 40% and depreciation equals capital expenditures each year. Working capital is projected to remain at 60% of sales. The weighted average cost of capital is 10%. It calculates the net present value of the cash flows as $10.60 and the terminal value in 1976 as $39.10, resulting in an equity value per share of $39.18.
The document projects cash flows for Nicholson File over 5 years from 1972-1976. It shows sales growing at 2% in 1972, 4% in 1973, and 6% each year after. EBIT is projected to be 12% of sales each year. The tax rate is 40% and depreciation equals capital expenditures each year. Working capital is projected to remain at 60% of sales. The weighted average cost of capital is 10%. It calculates the net present value of the cash flows as $10.60 and the terminal value in 1976 as $39.10, resulting in an equity value per share of $39.18.
The document projects cash flows for Nicholson File over 5 years from 1972-1976. It shows sales growing at 2% in 1972, 4% in 1973, and 6% each year after. EBIT is projected to be 12% of sales each year. The tax rate is 40% and depreciation equals capital expenditures each year. Working capital is projected to remain at 60% of sales. The weighted average cost of capital is 10%. It calculates the net present value of the cash flows as $10.60 and the terminal value in 1976 as $39.10, resulting in an equity value per share of $39.18.