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Year FCFF Terminal Valu Present Value

1 ($893.81) ($792.33)
2 ($832.48) ($654.18)
3 ($953.76) ($664.40)
4 ($1,036.78) ($640.23)
5 ($999.05) ($546.89)
6 ($728.08) ($355.43)
7 ($250.97) ($109.89)
8 ($344.40) ($136.02)
9 ($127.69) ($45.73)
10 $318.13 $60,899.33 $19,986.47
$16,041.34
ValuingOptionsorWarrantswhenthereisdilution
Enterthecurrentstockprice= $84.00
Enterthestrikepriceontheoption= 13.375
Entertheexpirationoftheoption= 8.4
Enterthestandarddeviationinstockprices= 50.00% (volatility)
Entertheannualizeddividendyieldonstock= 0.00%
Enterthetreasurybondrate= 6.50%
Enterthenumberofwarrants(options)outstanding= 38
Enterthenumberofsharesoutstanding= 340.79

VALUINGWARRANTSWHENTHEREISDILUTION
StockPrice= 84 #Warrantsissued= 38
StrikePrice= 13.375 #Sharesoutstanding= 341
AdjustedS(DONOTENTER)= Err:522 T.Bondrate= 6.50%
AdjustedK(DONOTENTER)= 13.375 Variance= 0.2500
Expiration(inyears)= 8.4 Annualizeddividendyield= 0.00%
Div.Adj.interestrate= 6.50%

d1= Err:522
N(d1)= Err:522

d2= Err:522
N(d2)= Err:522

Valueofthecall= Err:522
NumberofOptions= 38
ValueofOptions= Err:522
Value and Revenue Growth

120

100

80

60

40

20

0
41% 45% 50%
Value per Share and EBITDA Margins

80

70

60

50

Value per Share


40

30

20

10

0
6% 8% 10% 12% 14%
Revenue GrowValue per Share
41% 37.97
45% 61.43
50% 96.59

EBITDA/Sales Value per Share


6% 7.59
8% 22.67
10% 37.74
12% 52.81
14% 67.89
General FCFF Discount Model

AGeneralFCFFValuationModel
AnnstageModel
Thismodelisdesignedtovalueafirm,withchangingmargins,revenuegrowth,
andotherparameters.

Assumptions

1.Thefirmisexpectedtogrowatahighergrowthrateinthefirstperiod.

2.Thegrowthratewilldropattheendofthefirstperiodtothestablegrowthrate.

3.Thefreecashflowtoequityisthecorrectmeasureofexpectedcashflowstostockholders.

Theuserhastodefinethefollowinginputs:

1.Lengthofhighgrowthperiod

2.Expectedgrowthrateinearningsduringthehighgrowthperiod.

3.CapitalSpending,DepreciationandWorkingCapitalneedsduringthehighgrowthperiod.

4.Expectedgrowthrateinearningsduringthestablegrowthperiod.

5.Inputsforthecostofcapital.(Costofequity,Costofdebt,Weightsondebtandequity)

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General FCFF Discount Model

Inputstothemodel

CurrentEBIT= ($410.00) (incurrency)

CurrentNetIncome= ($442.00) (incurrency)


CurrentDividends= $0.00 (incurrency)

CurrentInterestExpense= $74.00 (incurrency)

CurrentCapitalSpending $242.67 (incurrency)

CurrentDepreciation= $30.67 (incurrency)

TaxRateonIncome= 35.00% (inpercent)

CurrentRevenues= $1,117.00 (incurrency)


CurrentWorkingCapital= ($110.50) (incurrency)

Chg.WorkingCapital= ($63.00) (incurrency)

BookValueofDebt= $348.68 (incurrency)

BookValueofEquity= $138.00 (incurrency)

NOLcarriedforward= $1,500.00

WeightsonDebtandEquity

Isthefirmpubliclytraded? Yes (YesorNo)

Ifyes,enterthemarketpricepershare= $84.00 (incurrency)

&Numberofsharesoutstanding= 340.79 (in#)

&MarketValueofDebt= $349.00 (incurrency)

Ifnotpubliclytraded,doyouwanttousethebookvaluedebtratio? (YesorNo)

Ifno,enterthedebttocapitalratiotobeused= (inpercent)

Enterlengthofextraordinarygrowthperiod= 10 (inyears)

CostsofComponents

Doyouwanttoentercostofequitydirectly? No (YesorNo)

Ifyes,enterthecostofequity= 15.35% (inpercent)

Ifno,entertheinputstothecostofequity
Betaofthestock= 1.6

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General FCFF Discount Model

Riskfreerate= 6.50% (inpercent)

RiskPremium= 4.00% (inpercent)

Enterthecostofdebtforcostofcapitalcalculation 8.00% (inpercent)

EarningsInputs

Pleaseenteryearspecificinputsforeachofthefollowingvariables:

Year GrowthRatein OperatingExpense GrowthRatein GrowthRatein WorkingCapital

Revenue as%ofRevenue CapitalSpending Depreciation as%ofRevenue


1 150.00% 115% 75% 100% 3.00%

2 100.00% 102% 50% 75% 3.00%

3 75.00% 100% 30% 50% 3.00%

4 50.00% 99% 25% 30% 3.00%

5 30.00% 98% 20% 25% 3.00%

6 25.20% 96.40% 16% 20% 3.00%

7 20.40% 94.80% 11% 16% 3.00%


8 15.60% 93.20% 6% 11% 3.00%

9 10.80% 91.60% 6% 6% 3.00%

10 6.00% 90% 6% 6% 3.00%

CompoundedAvg 43%

Entergrowthrateinstablegrowthperiod 6.00% (inpercent)

Enteroperatingexpensesas%ofRevenueinstablephase 90.00% (inpercent)


EnterWorkingCapitalas%ofRevenueinstablephase 3.00% (inpercent)

Willthebetachangeinthestableperiod? Yes (YesorNo)

Ifyes,enterthebetaforstableperiod= 1.00

Doyouwanttochangethedebtratiointhestablegrowthperiod? Yes (YesorNo)


Ifyes,enterthedebtratioforthestablegrowthperiod= 15% (inpercent)

Willthecostofdebtchangeinthestableperiod? Yes (YesorNo)

Ifyes,enterthenewcostofdebt= 8.00% (inpercent)

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General FCFF Discount Model

CapitalSpendingandDepreciationinStablegrowthperiod
Iscapitalspendingtobeoffsetbydepreciationinstableperiod? No (YesorNo)
Ifno,entercapitalexpendituresas%ofdepreciationinsteadystate: 110% (inpercent:>100%)

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General FCFF Discount Model

Outputfromtheprogram

CostofEquity= 12.90%

Equity/(Debt+Equity)= 98.80%
AftertaxCostofdebt= 5.20%

Debt/(Debt+Equity)= 1.20%

CostofCapital= 12.81%

1 2 3 4 5

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General FCFF Discount Model

Revenues $2,792.50 $5,585.00 $9,773.75 $14,660.63 $19,058.81

COGS $3,211.38 $5,696.70 $9,773.75 $14,514.02 $18,677.64

Depreciation $61.33 $107.33 $161.00 $209.30 $262.04


EBIT ($480.21) ($219.03) ($161.00) ($62.69) $119.13

EBIT*t $0.00 $0.00 $0.00 $0.00 $0.00

EBIT(1t) ($480.21) ($219.03) ($161.00) ($62.69) $119.13

+Depreciation $61.33 $107.33 $161.00 $209.30 $262.04

CapitalSpending $424.67 $637.00 $828.10 $1,036.78 $1,248.28

Chg.WorkingCa $50.27 $83.78 $125.66 $146.61 $131.95


FreeCFtoFirm ($893.81) ($832.48) ($953.76) ($1,036.78) ($999.05)

PresentValue ($792.33) ($654.18) ($664.40) ($640.23) ($546.89)

NOL $1,980.21 $2,199.24 $2,360.24 $2,422.94 $2,303.80

Index 0 0 0 0 0

CostofCapitalComputation

TaxRate 0% 0% 0% 0% 0%
Beta 1.60 1.60 1.60 1.60 1.60

CostofEquity 12.90% 12.90% 12.90% 12.90% 12.90%

CostofDebt 5.20% 5.20% 5.20% 5.20% 5.20%

DebtRatio 1.20% 1.20% 1.20% 1.20% 1.20%

CostofCapital 12.81% 12.81% 12.81% 12.81% 12.81%

Cum.WACC 1.12807 1.27255 1.43553 1.61938 1.82678

GrowthRateinStablePhase= 6.00%

FCFFinStablePhase= $2,256.32

CostofEquityinStablePhase= 10.50%

Equity/(Equity+Debt)= 85.00%

ATCostofDebtinStablePhase= 5.20%
Debt/(Equity+Debt)= 15.00%

CostofCapitalinStablePhase= 9.71%

Valueattheendofgrowthphase= $60,899.33

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General FCFF Discount Model

PresentValueofFCFFinhighgrowthphase= ($3,841.26)

PresentValueofTerminalValueofFirm= $19,882.60

Valueofthefirm= $16,041.34
MarketValueofDebt= $349.00

MarketValueofEquity= $15,692.34

ValueofOptionsOutstanding(Seeoptionworksheet)= Err:522

ValueofEquityinCommonStock= Err:522
ValueofEquityperShare= Err:522

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General FCFF Discount Model

el

ins,revenuegrowth,

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General FCFF Discount Model

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General FCFF Discount Model

cent:>100%)

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General FCFF Discount Model

6 7 8 9 10 TerminalYear

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General FCFF Discount Model

$23,861.63 $28,729.41 $33,211.19 $36,798.00 $39,005.88 $41,346.24

$23,002.61 $27,235.48 $31,484.21 $34,295.74 $35,729.39 $37,211.61

$315.50 $364.72 $404.11 $428.35 $454.06 $481.30


$543.52 $1,129.21 $1,322.87 $2,073.91 $2,822.44 $3,653.32

$0.00 $0.00 $242.13 $725.87 $987.85 $1,278.66

$543.52 $1,129.21 $1,080.74 $1,348.04 $1,834.58 $2,374.66

$315.50 $364.72 $404.11 $428.35 $454.06 $481.30

$1,443.02 $1,598.86 $1,694.79 $1,796.48 $1,904.27 $529.43

$144.08 $146.03 $134.45 $107.60 $66.24 $70.21


($728.08) ($250.97) ($344.40) ($127.69) $318.13 $2,256.32

($355.43) ($109.89) ($136.02) ($45.73) $103.87

$1,760.28 $631.07 $0.00 $0.00 $0.00

0 0 0 0 1

0% 0% 18% 35% 35% 35%


1.48 1.36 1.24 1.12 1.00 1.00

12.42% 11.94% 11.46% 10.98% 10.50% 10.50%

5.20% 5.20% 5.20% 5.20% 5.20% 5.20%

3.96% 6.72% 9.48% 12.24% 15.00% 15.00%

12.13% 11.49% 10.87% 10.27% 9.71% 9.71%

2.04843 2.28373 2.53190 2.79198 3.06295

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