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Inventory =
Inventory =
sales
inventory turnover ratio
$10,000,000
2
$5,000,000
Inventory =
Inventory =
Inventory =
sales
inventory turnover ratio
$10,000,000
5
$2,000,000
AR = $3,500 x 17 = $
3
97
365
30-15
= 0.030928 x 24.333333333
75.26%
25.08591
NOPAT=EBIT*(1-tax rate)
NOPAT = 108.6 * (1-40%)
NOPAT = $ 65.16
Operating capital= Net operating working capital (NOWC) - Net
NOWC=
$ 5.60 + $ 56.20 + $ 112.40 = $ 174.20
Net Plant and Equipment=
$ 11.20 + $ 28.10 =
Operating Capital= $174.2-$39.3
Operating Capital= $134.9
Total Operating Capital= Net operating capital+ Fixed Assets
Total Operating Capital=
$ 134.90 + $ 397.50 =
Investment in Capital=Change in operating Capital
= $ 532.40 - $ 502.20 =
Free Cash Flow=NOPAT - Investment in Capital
= $ 65.16 - $ 30.20
Free Cash Flow = $34.96
39.30
$ 532.40
$
30.20
FCF
WACC - g
$37.06
11 % - 6%
= $741.15
=
Value of operations
$699.20
$749.10
+ marketable securities
+
$49.90
Value of Equity
Value of Equity
Value of Equity
Price per share
Price per share
Price per share
- debt
- $210.70
- preferred stock
$35
Value of Equity
number of shares
$503.40
=
10
=
$50.34
=
50.34