Fight Finance

(a) Capital expenditure is forecast to be positive over the next 5 years, meaning that more non-current assets will be purchased than sold.

(b) 'Free cash flow to firm' is discounted by the 15% pa cost of equity.

(c) $34.3m 'Total PV of Explicit Free Cashflow' is the sum of the 'Pv of free cashflow' over the 5 year horizon, from FY2017 to 2021 inclusive.

(d) $97.7m terminal value, if based on the perpetuity formula, must assume a $10.56137m free cash flow in FY2022, corresponding to a 3.54% growth rate between FY2021 and 2022.

(e) $17.5m Net debt is negative because the firm's cash is greater than its interest bearing debt.