Determine the value of the firm today if we assume that the


Skeets Mfg Inc forecasts the following financial information for the next 3 years (in millions):

                                       Year 1                 Year 2                 Year 3

Revenues                       $25,200              $27,540              $32,300

Operating Expenses      $13,650              $13,848              $14,200

Depreciation                  $6,573                $5,580                $6,750

EBIT                                $4,977                $8,112                $11,350

Interest Expenses          $1,170                $1,572                $1,325

Taxes                              $1,332                $2,289                $3,509

Net Income                    $2,475                $4,251                $6,516

Increase in NWC            $165                   $420                   $735

The firm estimates capital expenditures of $1,200 million in year1, $750 million in year 2 and $1,550 million in year 3. Determine the value of the firm today if we assume that the free cash flows will grow at 3% per year indefinitely after year 3 and the firm has a weighted average cost of capital of 14%?

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Financial Management: Determine the value of the firm today if we assume that the
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