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[null,"FCFF STABLE GROWTH MODEL"]
[]
[null,"This model is designed to value  a stable firm on the basis of"]
[null,"free cashflows to firm."]
[]
[]
[null,"Assumptions in the model:"]
[null,"1. The firm is in steady state and will grow at a stable rate forever."]
[null,"2. The firm's leverage is known and constant."]
[]
[null,"User defined inputs"]
[null,"The user has to define the following inputs to the model:"]
[null,"1. Current EBIT and tax rate"]
[null,"2. Capital Spending and Depreciation"]
[null,"3. Change in working capital"]
[null,"4. Debt ratio"]
[null,"5. Cost of Equity or Inputs to the CAPM (Beta, Riskfree rate, Risk Premium) and Cost of Debt"]
[null,"6. Expected Growth Rate in free cashflows to firm forever."]
[]
[null,"Please enter inputs to the model:"]
[null,"Current EBIT",null,{"v":1535,"d":"$1,535.00"},"(in currency)"]
[null,"Current tax rate =",null,{"v":0.36,"d":"36%"}]
[]
[null,"Capital Expenditures",null,{"v":550,"d":"$550.00"},"(in currency)"]
[null,"Depreciation =",null,{"v":400,"d":"$400.00"},"(in currency)"]
[null,"Change in Working Capital =",null,{"v":160,"d":"$160.00"},"(in currency)","If negative, enter zero."]
[null,"Do you want to change the capital expenditure/depreciation ratio?",{"$nulls":3},"Yes","(Yes or No)"]
[null,"If so, enter capital expenditures as a percent of depreciation",{"$nulls":3},{"v":1.25,"d":"125%"}]
[null,"Debt ratio =",null,{"v":0.2997,"d":"29.97%"},"( in percent)"]
[]
[null,"Are you directly entering the cost of equity? (Yes or No)",{"$nulls":3},"No"]
[null,"If yes, enter cost of equity =",null,null,"(in percent)"]
[null,"If no, enter the inputs for the CAPM"]
[null,"Beta of the stock =",null,1.1]
[null,"Riskfree rate =",null,{"v":0.07,"d":"7%"},"(in percent)"]
[null,"Risk Premium=",null,{"v":0.055,"d":"5.50%"},"(in percent)"]
[]
[null,"Enter the cost of debt =",null,{"v":0.085,"d":"8.50%"},null,"This is a pre-tax cost of borrowing."]
[]
[null,"Expected Growth Rate =",null,{"v":0.05,"d":"5%"}," (in percent)","The expected growth rate for a stable firm"]
[{"$nulls":5},"cannot be significantly higher than the nominal"]
[{"$nulls":5},"growth rate in the economy in which the firm"]
[{"$nulls":5},"operates. It can be lower."]
[]
[null,"Warnings:",""]
[null,null," "]
[null,null," "]
[]
[null,"This is the output from the  Model"]
[null,"Firm Details: from inputs on prior page"]
[null,"EBIT (1- tax rate) =",{"$nulls":3},{"v":982.4,"d":"$982.40"}]
[null," - (Capital Spending - Depreciation)",{"$nulls":3},{"v":100,"d":"$100.00"}]
[null," - Change in Working Capital",{"$nulls":3},{"v":160,"d":"$160.00"}]
[null,"Free Cashflow to Firm =",{"$nulls":3},{"v":722.4,"d":"$722.40"}]
[]
[null,"Cost of Equity =",null,{"v":0.1305,"d":"13.05%"}]
[null,"Cost of Debt =",null,{"v":0.054400000000000004,"d":"5.44%"}]
[null,"Cost of Capital =",null,{"v":0.10769282999999999,"d":"10.77%"}]
[null,"Expected Growth rate =",null,{"v":0.05,"d":"5.00%"}," "]
[]
[null,null,"Value of Firm",null,null,{"v":13147.560970748014,"d":"$13,147.56"}]
[]
[]
[null,"Growth rate","Value"]
[null,{"v":0.07,"d":"7.00%"},{"v":20507.03011686839,"d":"$20,507.03"}]
[null,{"v":0.060000000000000005,"d":"6.00%"},{"v":16055.74674432195,"d":"$16,055.75"}]
[null,{"v":0.05,"d":"5.00%"},{"v":13147.560970748014,"d":"$13,147.56"}]
[null,{"v":0.04,"d":"4.00%"},{"v":11098.605273261588,"d":"$11,098.61"}]
[null,{"v":0.030000000000000002,"d":"3.00%"},{"v":9577.099971773458,"d":"$9,577.10"}]
[null,{"v":0.020000000000000004,"d":"2.00%"},{"v":8402.602584498642,"d":"$8,402.60"}]
[null,{"v":0.010000000000000002,"d":"1.00%"},{"v":7468.552195693381,"d":"$7,468.55"}]