Any entrepreneur aims at making profits because they help to make the business grow. therefore profit generation and how to maximize the potential of your business are taught in business studies. The subject is applied in different life situations. This is interesting making the subject favorite to many learners. There are some who find the subject tough especially when answering questions. My homework writers offer business assignment help for example;
An equity analyst is valuing a listed company with an expected year-on-year growth rate of sales as given in Table 1.
1 Year -3
2 Year +4
3 Year +2
4Year +1
The EBIT margin (as percentage of sales) is expected to grow 25 basis points (0.25%) per year between year 2 and year 5. In year 1 the expected level of sales is €78,000 with EBIT margin of 7%. Additional assumptions are: . Depreciation: 5% of sales, all years Recurrent Capex: 7% of sales for year 1, with percentage decreasing 45 basis points (0.45%) per year until year 4
• Change in working capital: 20% of yearly changes of EBIT
• Tax rate: 25%
• Target capital structure: debt/(debt + equity) ratio of 40% Asset beta: 1.25 . . Risk-free rate: 0.8% .
• Equity risk premium: 6% Debt spread: 3% To answer the following questions make plausible assumptions if necessary. In case you prefer, standard characters can be used (e.g. b rather than B, capital_sigma rather than Σ).
a. Compute the Free Cash Flows to the Firm (FCF) for the period from year 1 until year 5, including year 5. Explain your answer.
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Profit is the main aim for people having investments or indulging in business. this makes business studies enjoyable. however, there are many learners who get the subject to be hard. Worry no more because my homework writers are here for you. we offer high-quality assignment help at an affordable price.