Homework Answers
| 2017 | 2018E | |
| Sales | 560.0 | 588.0 |
| Less : Operating expense | 336.0 | 323.4 |
| EBITDA | 224.0 | 264.6 |
| Less : Depreciation | 76.5 | 85.0 |
| Less : Amortization | 5.0 | 3.0 |
| EBIT | 142.5 | 179.6 |
| Less : Interest expense | 52.0 | 54.6 |
| Add: Interest income | 10.0 | 15.0 |
| Earnings before taxes | 100.5 | 140.0 |
| Taxes @23% | 23.12 | 32.20 |
| Earnings after taxes | 77.39 | 107.80 |
| a. | ||
| NOPLAT = EBIT * (1 - tax rate) | ||
| NOPLAT = 179.6*(1-23%) | ||
| NOPLAT = 138.29 | ||
| b. | ||
| a. EBITA = EBIT + Amortization | ||
| 179.6+3 = 182.6 | ||
| b. Cash tax | ||
| 125+32.2-145 = 12.2 | ||
| c. FCF | ||
| FCF = NOPLAT + D&A - Capex - Change in working capital | ||
| FCF =138.29 + 85 + 3 -125 - (-2.5) | ||
| FCF = 103.79 | ||
| Change in working capital = (80+102.5-145)-(75+95-130) | ||
| Change in working capital = -2.5 | ||
| d. Net income = 107.80 |
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