Compute DCF: 2016 EBITDA $100, interest $10, D&A $20, CapEx $20, AR +$50, AP +$30. Tax 25%. FCF grows 5%. Cash $50, Debt $200. Discount rate 10%. Use mid-year convention.

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Accepted Answer

Year 1 UFCF: EBIT = $100 − $20 = $80. 75 = $60.

Compute DCF: 2016 EBITDA $100, interest $10, D&A $20, CapEx $20, AR +$50, AP +$30. Tax 25%. FCF grows 5%. Cash $50, Debt $200. Discount rate 10%. Use mid-year convention.

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