Family Dollar Acquisition

	A	B	C	D	E	F	G	H	I	J	K	L
1		Projected post acquisition 2015-2019						Tax rate
2	Calculate Free Cash Flow to the Firm	2015	2016	2017	2018	2019		266320	533633	744176	841701	948615
3	EBIT (operating profit)	648022	910917	1132756	1241761	1358768		95343	191041	266415	301329	339604
4	EBIT*(1-t)	416,029	584,807	727,227	797,209	872,327		0.3580016521	0.3580007233	0.3579999892	0.3580000499	0.3579998208
5	+ Depreciation	310,000	307,000	306,000	305,000	304,000
6	- Change in working capital	(115,070)	89,544	91,104	79,110	85,042
7	- Capital Expenditure	370,079	486,088	488,208	463,219	474,086
8	Total free cash flows	471,020	316,175	453,915	559,880	617,199
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10	What is your estimate of tax rate?	t =	35.80%
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12	Calculate change in NWC over prior year	2014	2015	2016	2017	2018	2019
13	Net working capital	989216	874146	963690	1054794	1133904	1218946
14	Change in net working capital		-115,070	89,544	91,104	79,110	85,042
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16	Calculate Capital Expenditure (CAPEX)	2014	2015	2016	2017	2018	2019
17	PP&E	1,688,213	1,748,292	1,927,380	2,109,588	2,267,807	2,437,893
18	Depreciation	265,461	310,000	307,000	306,000	305,000	304,000
19	CAPEX		370,079	486,088	488,208	463,219	474,086
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