27 Jun The following is a presentation of re-organized financial statements of ABC Limited for the ecent period and five year projections
The following is a presentation of re-organized financial statements of ABC Limited for the ecent period and five year projections. Figures in million Kenya shillings. ACTUAL PROJECTED 4 1 Non-Current Assets (NET 2 | Current-Assets 3 Current lfabilities 4 Revenues 400 480 576 691.2 829.44 995.328 50 60 72 864 10368 124.42 40 48 57.6 69.1282.94 99.53 600 720 864 1036.8 1244.16 i 1492.99 ngs Before Interesto Tax | 100| 120| 14 172.81 207.36 248.83 6|Depreciation and ammonizationj 50丨 60 72 86.4 103.68 124.42 Additional information (i) Applicable tax-rate is 30%. (i) It is expected that after year five (projection), all items except non-current assets and, depreciation and amortization will grow at an annual rate of 5% each year indefinitely. Investment on capital projects and non-cash charges will off-set each other (ii) Weighted average cost of capital during high growth stage and stable growth stages has been estimated as 12% and 6% respectively. Required (a) Compute growth rate for the high growth stage. (b) Compute free cash flow for projected years 1, 2,3, 4 and 5. (10 marks) (o) Compute the value of ABC Limited given the above information. Using free (5 marks) cash flow to the firm’s model. (10 marks) (5 marks) Total: 30 marks (d) Compute the terminal value of ABC Limited.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.