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Assume again that last year Brock had an EBIT of $1600, Depreciation of 600, capital expenditures...

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Finance

Assume again that last year Brock had an EBIT of $1600,Depreciation of 600, capital expenditures of 700, operating NWC of1000 and a tax rate of .25. However, Allan’s management believesthat Brock will grow at 18% for the next 3 years, and at a constantrate of 5% thereafter. Recompute the value of Brock, assuming thatits WACC will remain 10%.

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Given Last year EBIT 1600 Tax 251600 400 Net Income 1200 Operating cash flow Net Income Depreciation Operating NWC Operating cash flow 1200 600 1000 Operating    See Answer
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Assume again that last year Brock had an EBIT of $1600,Depreciation of 600, capital expenditures of 700, operating NWC of1000 and a tax rate of .25. However, Allan’s management believesthat Brock will grow at 18% for the next 3 years, and at a constantrate of 5% thereafter. Recompute the value of Brock, assuming thatits WACC will remain 10%.

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