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Use the following information to develop a spreadsheet model that will calculate the free cash flows...

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Finance

Use the following information to develop a spreadsheet modelthat will calculate the free cash flows and the value of the equityfor the company. Cost of capital 12% Most recent year’s sales $1000Nonoperating assets $100 Interest-bearing debt $250 Operatingprofit margin 12% Working capital/sales 35% Fixed assets/sales 20%Noninterest-bearing Current liabilities/sales 10% Tax rate 40%Forecasted sales growth Years 1?2 12% Years 3?5 8% 6?N 4%

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Please see the snapshot below Year n 0 1 2 3 4 5 6 Sales Si Si1 x 1 gi 100000 112000 125440 135475 146313 158018 164339 yoy growth rate gi 12 12 8 8 8 4    See Answer
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