Hello, my question has been answered several times in Chegg, you can easily find

Question

Hello, my question has been answered several times in Chegg, you can easily find the answers. My problem is they do not explain how they got these answers. If you decide to answer my question could you please explain how you got it. Please tell me the formula you used to get it in excel. If its blurry or letters are to small, you can easily see it by zooming in from computer or looking at with your phone.

Last part that was cut off.

Value of common equity

Divided by number of shares

Price per share

Explanation / Answer

A) partial income statement for the year ending december 31st (million of dollars): 31.12.2017 31.12.2018 31.12.2019 net sales $ 920 1012 1072.72 less: cost (except depreciation) $ 662.4 728.64 772.3584 depreciation $ 69 75.9 80.45 total operating costs $ 731.4 804.54 852.8084 earning before int and tax SALES- TOTAL OPERATING COSTS $ 188.6 207.46 219.9116 workings to support calculation: 31.12.2017 31.12.2018 31.12.2019 1) net sales 15% 10% 6% net sales in a yr= previous year sale+growth rate increase in sale 800+(800*15/100) 920+(920*10/100) 1012+(1012*6/100) 2) cost (except depreciation) 72% 72% 72% cost is specified % of sales 920*72% 1012*72% 1072.72*72% 3) depreciation (net PPE) 690*10/100 759*10/100 804.54*10/100 NET PPE*10/100 partial balnce sheets for december 31st (million of dollars): actual projected projected projected 31.12.2016 31.12.2017 31.12.2018 31.12.2019 OPERATING ASSETS cash $ 8 9.2 10.12 10.7272 accounts receivable $ 80 92 101.2 107.272 inventory $ 160 184 202.4 214.544 net plant and equipment $ 600 690 759 804.54 OPERATING LIABILITIES accounts payable $ 16 18.4 20.24 21.4544 accruals $ 40 46 50.6 53.636 workings to supprt calculation: sales $ 800 920 1012 1072.72 cash /sales 1% 1% 1% 1% (cash sales is 1% of sales) $ 8 9.2 10.12 10.7272 800*1/100 920*1/100 1012*1/100 1072.72*1/100 accounts receivable/sales accounts receivable is 10 % of sales $ 80 92 101.2 107.272 800*10/100 920*10/100 1012*10/100 1072.72*10/100 Inventory /sales Inventory is 20 % ofsales $ 160 184 202.4 214.544 80*20% 920*20% 1012*20% 1072.72*20% net PPE/sales net PPE is 75% of sales $ 600 690 759 804.54 80*75% 920*75% 1012*75% 1072.72*75% account payable/sales account payable is 2% ofsales $ 16 18.4 20.24 21.4544 80*2% 920*2% 1012*2% 1072.72*2% accruals /sales accruals is 5% of sales $ 40 46 50.6 53.636 80*5% 920*5% 1012*5% 1072.72*5% tax rates 40% 40% 40% 40% WACC 10.50% 10.50% 10.50% 10.50% b) calculation of FCF: Actual projected projected projected 31.12.2016 31.12.2017 31.12.2018 31.12.2019 operating current assets 248 285.2 313.72 332.5432 operating current liabilities 56 64.4 70.84 75.0904 net operating working capital 192 220.8 242.88 257.4528 net PPE 600 690 759 804.54 total net operating capital 792 910.8 1001.88 1061.9928 NOPAT 79.2 93.96 105.276 112.74696 investment in total net operating capital free cash flow growth in FCF groWth in sales WORKINGS: current assets cash 9.2 10.12 10.7272 accounts receivable 92 101.2 107.272 inventory 184 202.4 214.544 current liabilities accounts payable 18.4 20.24 21.4544 accruals 46 50.6 53.636 earnings before int and tax 188.6 207.46 219.9116 less interest -32 -32 -32 156.6 175.46 187.9116 less: tax @ 40% -62.64 -70.184 -75.16464 NOPAT 93.96 105.276 112.74696

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