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HOL
D
BUY
SELL
BUY
Source:http://investing.businessweek.com/research/stocks/charts/charts.asp?ticker=EFOODS:PA
3,000,000 35%
30%
1st Stage 43 2nd Stage 22%
2,500,000
Rupees
2,000,000
25% Growth % Growth exponential
1,500,000
Years 20%
15%
Rate Rate decay
1,000,000 F 10%
500,000 5%
1st Stage 5 2nd Stage 10 years
Time Period Time
yrs
0 0%
0 5 10 15 20
Period
Perpetuity Growth 5%
FCF
DCFC
Rate
WACC 12.34
Growth
COST OF 9.06 TAX RATE 0.35
Rate
Time Period to
DEBT 15 years
Perpetuity
COST OF 14.14 PROPORTION OF 0.35 : 0.65
Source: Student Estimates EQUITY DEBT TO EQUITY
RISK FREE 12 BETA 1.18
RATE
Compan Initiatio
Wht RM WhyFinancial Financial
13.81 BORROWING Risk
RATE Risk
Data and
13.94
Valuatio Valuatio
y n invest in Analysis
Invest in Analysis Analysis Analysis
Charts
n n
Overvie Coverag
Piaggio Piaggio
Valuation: Discounted
Cash Flow
WACC
Assumptions
WACC 12.34
COST OF 9.06 TAX RATE 0.35
DEBT
COST OF 14.14 PROPORTION 0.35 :
EQUITY OF DEBT TO 0.65
EQUITY
RISK FREE 12 BETA 1.18
RATE
RM 13.81 BORROWING 13.94
RATE