Financial Modeling Initial Data Income Statement Sales Cost of Goods sold Interest payment on debt Interest earned

on cash and marketable securities Depricaition profit before tax Taxes profit after tax dividends retained earnings Balance Sheet Cash and Marketable Securities current assets fixed assets At cost accumulated depriciation net fixed assets Total Assets Current Liabilities debt stock Accumulated Retained Earnings Total Liabilities and equity

1000 -500 -32 6 100 374 -150 225 -90 135

80 150 1070 -300 770 1000 80 320 450 150 1000

Setting up Financial Model Sales growth Current assets/sales current liabilities/sales netfixed assets/sales Cost of Goods Sold/sales

10% 15% 0.08 77% -0.5

depricaition rate Interest Rate on debt Intrest earned on cash and marketable securities Tax rate Dividend payout ratio Proforma Financial Statement End of years Income Statement Sales Cost of Goods sold Interest payment on debt Interest earned on cash and marketable securities Depricaition Profit before tax Taxes Profit after tax dividends retained earnings Balance Sheet Cash and Marketable Securities current assets fixed assets At cost accumulated depriciation net fixed assets Total Assets Current Liabilities debt stock Accumulated Retained Earnings Total Liabilities and equity Free Cashflows to the Firm Net Income

10% 10% 8% 40% 40%

0 1000 -500 -32 6 100 374 -150 225 -90 135

1 1100 -550 -32 9 -117 410 -164 246 -98 148

80 150 1070 -300 770 1000 80 320 450 150 1000

144 165 1264 -417 847 1156 88 320 450 298 1156 1 246

Add Depriciation after tax interest expense (+) after tax interest earned on Cash & marketable Securities (-) Change in Working Capital increase in current assets (-) increase in Current liabilities (+) increase in Fixed Assets (-) Net cashflows to the firm WACC Long term Growth Rate Net free cashflows Terminal cashflows Net free cashflows Value to the company Present value of cashflows add cash balance of this year(+) Less value of debt Net value to the company Mid year Discounting Present value of cashflows Cash balance of this year(+) value of debt(-) Net value to the company Sensitivity Analysis Sales Forecast 5% 10% 15% 20% Required Discount Rate

117 19 -5 -15 8 -194 20% 5% 176 176

1230.9 80.0 -320.0 990.9

1348.4 80.0 -320.0 1108.4

990.9 997.2 990.9 949.8 864.7

1108.4 6% 19070.5 7% 9447.2

8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%
25000

6239.6 4635.8 3673.6 3032.2 2574.0 2230.5 1963.3 1749.5 1574.6 1428.9 1305.6 1199.9 1108.4

20000

15000

10000

5000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

2 1210 -605 -32 14 -137 450 -180 270 -108 162

3 1331 -666 -32 20 -161 492 -197 295 -118 177

4 1464 -732 -32 26 -189 538 -215 323 -129 194

5 1611 -805 -32 33 -220 587 -235 352 -141 211

213 182 1486 -554 932 1326 97 320 450 460 1326 2 270

289 200 1740 -715 1025 1513 106 320 450 637 1513 3 295

371 220 2031 -904 1127 1718 117 320 450 830 1718 4 323

459 242 2364 -1124 1240 1941 129 320 450 1042 1941 5 352

137 19 -9 -17 9 -222

161 19 -12 -18 10 -254

189 19 -16 -20 11 -291

220 19 -20 -22 12 -333

188 188

201 201

214 214

228 1598 1826

Series2 Required Discounted Rate

16

Financial Modeling Initial Data Income Statement Sales Cost of Goods sold Interest payment on debt Interest earned on cash and marketable securities Depricaition profit before tax Taxes profit after tax dividends retained earnings Balance Sheet Cash and Marketable Securities current assets fixed assets At cost accumulated depriciation net fixed assets Total Assets Current Liabilities debt stock Accumulated Retained Earnings Total Liabilities and equity

1000 -500 -32 6 100 374 -150 225 -90 135

80 150 1070 -300 770 1000 80 320 450 150 1000

Setting up Financial Model Sales growth Current assets/sales current liabilities/sales netfixed assets/sales Cost of Goods Sold/sales depricaition rate Interest Rate on debt Intrest earned on cash and marketable securities Tax rate Dividend payout ratio Proforma Financial Statement End of years Income Statement Sales

15% 0.15 0.08 80% -0.5 0.1 0.1 0.08 0.4 60%

0 1000

1 1150

2 1323

3 1521

Cost of Goods sold Interest payment on debt Interest earned on cash and marketable securities Depricaition Profit before tax Taxes Profit after tax dividends retained earnings Balance Sheet Cash and Marketable Securities current assets fixed assets At cost accumulated depriciation net fixed assets Total Assets Current Liabilities debt stock Accumulated Retained Earnings Total Liabilities and equity

-500 -32 6 100 374 -150 225 -90 135

-575 -32 4 -121 427 -171 256 -154 102

-661 -33 1 -148 481 -192 289 -173 115

-760 -35 0 -180 545 -218 327 -196 131

80 150 1070 -300 770 1000 80 320 450 150 1000

22 173 1341 -421 920 1114 92 320 450 252 1114

0 198 1627 -569 1058 1256 106 333 450 368 1256

0 228 1965 -749 1217 1445 122 374 450 499 1445

4 1749

5 2011

-875 -40 0 -216 618 -247 371 -223 148

-1006 -45 0 -260 700 -280 420 -252 168

0 262 2364 -965 1399 1662 140 425 450 647 1662

0 302 2834 -1225 1609 1911 161 485 450 815 1911