8/12/2019 Cooper Resuelto_cooper Resuelto

1/2

Nicholson--- Free Cash Flows (Millions US $)Reales Projections

1971 1972 1973 1974 1975

Sales (a) 55.3 58.6 62.1 65.9 69.8Costs of Sales (b) 37.9 39.3 40.4 42.8 45.4Administrative Costs 12.3 12.3 12.4 12.5 13.3

Depreciations 2.1 2.1 2.1 2.1 2.1Other Expenses 0.2 0.2 0.2 0.2 0.2Earnings before taxes 2.8 4.7 7.0 8.2 8.9Taxes (40%) 1.1 1.9 2.8 3.3 3.5Earnings after taxes 1.7 2.8 4.2 4.9 5.3+ Depreciation 2.1 2.1 2.1 2.1 2.1Operating Cash-Flow 3.8 4.9 6.3 7.0 7.4- Changes in Working Capi -1.5 -1.5 -1.5 -1.6 -1.7

- Fixed Capital Investments -2.1 -2.1 -2.1 -2.1 -2.1Residual Value (e)Free Cash Flow 0.2 1.4 2.7 3.3 3.6

Present Value of Cash Flow $51.74

- Long Term Debt 12Equity Value (max.) $39.74Value per share (f) $68.05

(a)Assume an anual growth rate of 6%(b)Assume they account for 67% (1972) and 65% (1973 onwards) of sale volume Assume they account for 21%,20% and19% for 1972, 1973, and 1974 onwards(d) Asuem then equal to depreciation(e) Assume a perpetuity with a 3% growth rate(f)There are 584000 shares of Nicholson

Nicholsons Cost of Capital

Cost of Debt 6.60%Tax Rate 40%Cost of Equity 13%Leverage ratio 0.31WACC 10.20%

8/12/2019 Cooper Resuelto_cooper Resuelto

2/2

1976 1977 1978 1979 1980 1981

74.0 78.4 83.2 88.1 93.4 99.048.1 51.0 54.0 57.3 60.7 64.414.1 14.9 15.8 16.7 17.8 18.8

2.1 2.1 2.1 2.1 2.1 2.10.2 0.2 0.2 0.2 0.2 0.29.5 10.3 11.0 11.8 12.6 13.53.8 4.1 4.4 4.7 5.1 5.45.7 6.2 6.6 7.1 7.6 8.12.1 2.1 2.1 2.1 2.1 2.17.8 8.3 8.7 9.2 9.7 10.2

-1.8 -2.0 -2.1 -2.2 -2.3 -2.5

-2.1 -2.1 -2.1 -2.1 -2.1 -2.178.6

3.9 4.2 4.5 4.9 5.3 84.3