Answer the question attached in the image below You are valuing a company that had sales of £ 80000 in 2021 and the expected year-on-year growth rate of sales for years 2022 and 2023are 5% and 2%, respectively. For both years 2022 and 2023 you expect EBIT margin (as a percentage of sales) to be 12%. The corporatetax rate is 20%. You have the additional assumptions:a.O b.OC.Values in ££ 6864 and £ 8349, respectively£ 6864 and £ 7925, respectively£ 7197 and £8349, respectivelyDepreciations &ProvisionsThe expected Free Cash Flow to the firm in years 2022 and 2023 are:CapexChanges WorkingCapital202224003200400202328003400-30000

Free cash flow is cash flow available after the deductions of all expenses including capex and…

You are valuing a company that had sales of £ 80000 in 2021 and the expected year-on-year growth rate of sa are 5% and 2%, respectively. For both years 2022 and 2023 you expect EBIT margin (as a percentage of sales tax rate is 20%. You have the additional assumptions: Values in £ Depreciations & Provisions Capex Changes Working Capital 2022 2400 3200 400 2023 2800 3400 -300

You are valuing a company that had sales of £ 80000 in 2021 and the expected year-on-year growth rate of sa are 5% and 2%, respectively. For both years 2022 and 2023 you expect EBIT margin (as a percentage of sales tax rate is 20%. You have the additional assumptions: Values in £ Depreciations & Provisions Capex Changes Working Capital 2022 2400 3200 400 2023 2800 3400 -300

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

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