COMMERCE 4FX3 Study Guide - Shoppers Drug Mart, Capital Expenditure, Cash Flow
31 Oct 2014
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Answer the following questions using the financial statements of shoppers drug mart (sc. to) provided to you. Choose the answer closest to yours because of possible rounding: the company expects sales to grow at 3% per year and also expects to keep constant. Ebitda margin and effective income tax rate in every forecast year. The constant ebitda margin and effective income tax rate equal those observed for the year ended december 31, Assume that the company defines capex as the acquisition and development of property, equipment, and intangible assets, net of the proceeds from their disposition. Also, assume that capex, finance expenses, depreciation and amortization, and net change in non-cash working capital in every forecast year will equal those observed for the year ended december. Assume that the company"s total debt level in 2015 will remain unchanged from 2012 with almost no cash balance. Using a weighted average cost of capital of 15% and the exit-year.
