(in USD million)

Sales
Cost of Goods Sold
General Admin Expense
EBIT
Tax rate on EBIT
NOPLAT
Depreciation
Amortization
Increase in Working Capital
Capital Expenditure
Free Cash Flow
Free Cash Flow Growth %
Terminal Value (1994)
WACC
Discounted Cash Flow
PV (end of 1990)
FCF
Terminal Value
Entity Value
Debt
Non-Operating Assets
Firm Value
No. of share outstanding
Value per share

1989
337.4
(104.9)
(197.6)
34.9
37%
22.0
11.7
-

1990
380.0
(114.4)
(222.5)
43.1
37%
27.1
19.0
3.3
(8.0)
(20.0)
21.5

1991
418.0
(125.1)
(237.8)
55.0
37%
34.7
20.0
3.3
(7.1)
(20.9)
30.0
39.5%

1992
451.4
(133.6)
(248.7)
69.1
37%
43.5
22.6
3.3
(6.3)
(22.6)
40.6
35.3%

15.21%

0
21.5

1
26.0

2
30.6

71.1
71.1
18.7%

78.2
78.2
18.7%

84.4
84.4
18.7%

12.6%

10.0%

8.0%

31.1%
58.6%
3.5%

30.1%
58.6%
5.0%
5.3%

29.9%
56.9%
4.8%
5.0%

29.6%
55.1%
5.0%
5.0%

94.5
40.5
16.9
32.1
10.1
3.6

106.4
45.6
19.0
36.1
11.4
4.0

115.9
47.9
19.7
37.9
12.6
4.8

126.2
50.3
20.4
39.8
13.9
5.2

130.4
246.3
376.7
376.7
100
3.77

Assumptions
Operating Working Capital
Excess Cash
Working Capital
as % of sales

63.1
63.1
18.7%

Sales Growth %
% of sales
Cost of Goods Sold
Selling, G&A (Excl. Amortization)
Depreciation
Capital Expenditure
For Reference only (from Book)
Production costs
Commercial costs
Advertising expense
Admin expense
Transportation costs
Participation salaries

Total S,G&A
Total S,G&A %
Total S,G&A % (Excl. Amortization)

197.6
58.6%
58.6%

222.5
58.6%
57.7%

238.8
57.1%
56.3%

255.8
56.7%
55.9%

1993
478.5
(141.6)
(263.2)
73.7
37%
46.4
23.9
(5.1)
(23.9)
41.4
1.9%

1994
500.1
(148.0)
(275.0)
77.0
37%
48.5
25.0
(4.0)
(25.0)
44.5
7.6%

1995
522.6
(154.7)
(287.4)
80.5
37%
50.7
26.1 Adj. Depr. as % of sales
(4.2)
(26.1)
46.5
4.5% Constant growth rate

3
27.0

434.0
4
25.2

89.5
89.5
18.7%

93.5
93.5
18.7%

97.7
97.7
18.7%

6.0%

4.5%

29.6%
55.0%
5.0%
5.0%

29.6%
55.0%
5.0%
5.0%

138.8
55.3
22.4
43.8
15.3
6.5

152.7
60.8
24.6
48.2
16.8
7.0

4.5% 4-5% seems more reasonable

29.6%
55.0%
5.0%
5.0%

282.1
59.0%
59.0%

310.2
62.0%
62.0%
Computation of WACC
Rf
10.06%
Rm
5%
Beta
1.2
Cost(E)
16.06%
Cost(D)
9.62%
Eff. Tax%
37.00%
Cost(D) net
6.06%
Debt
37
Equity
400
Debt/Value
8.47%
WACC
15.21%

Long term Gov. bond

??
Assume AA grade for now

??
??