Sales

Cost of Sales
Gross profit
Research and Development
Operating expenses including depreciation
Operating income
Taxes (34%)
Net Income
Cumulative tax loss carry-forward
Capital expenditures
Add interest and depreciation
Free Cash Flows

1995
16,625.00
1,736.00
14,889.00
6,115.00
13,449.00
-4,675.00
0.00
-4,675.00
-4,675.00
7,614.25
914.38
-11,374.88
Year
1/(1+wacc)^t
Discounted cash flows
NPV
Number of shares
New shares

1996
1997
25,788.70 40,003.43
2,682.02
4,160.36
23,106.68 35,843.07
9,490.24
18,309.98
-4,693.54
0.00
-4,693.54
-9,368.54
9,026.05
1,418.38
-12,301.21
1.00
0.89
-10,973.74
1,020,366.63
32,764.00
5,000.00

Price per share

Assumptions

Growth in sales
Riskless rate

Beta
6.71
0.725
Discount rate
12.10%
Growth rate
55.12%
Terminal Value at a perpetual growth rate
4.00%
Changes in Working capital
0.00%
Cost of revenues
10.40%
of sales
R&D
36.80%
of sales
Other operating
decline toexpenses
20.9 percent of sales by 2001 (in 1995 is 81%, so 20.90%
declines 10 percent per year)
Capital expenditures
will decline to 11 percent by 2001. It is
11.00%
45.8% of revenues by 2001
Depreciation
5.50%
of sales

14,721.26
24,402.09
-3,280.28
0.00
-3,280.28
-12,648.82
12,801.10
2,200.19
-13,881.19
2.00
0.80
-11,046.91

27.02

MRP
7.43

1998
1999
2000
2001
2002
2003
2004
2005
62,053.32 96,257.11 149,314.04 231,615.93 359,282.63 557,319.22 864,513.58 1,341,033.46
6,453.55 10,010.74 15,528.66 24,088.06 37,365.39 57,961.20 89,909.41
139,467.48
55,599.78 86,246.37 133,785.38 207,527.88 321,917.24 499,358.02 774,604.17 1,201,565.98
22,835.62
31,647.19
1,116.96
0.00
1,116.96
-11,531.86
16,133.86
3,412.93
-11,603.97
3.00
0.71
-8,238.11

35,422.62
39,465.42
11,358.34
0.00
11,358.34
-173.53
17,326.28
5,294.14
-673.80
4.00
0.63
-426.74

54,947.57
46,287.35
32,550.46
11,008.16
21,542.30
0.00
16,424.54
8,212.27
13,330.03
5.00
0.56
7,531.23

85,234.66 132,216.01 205,093.47 318,141.00

48,639.35 75,449.35 117,037.04 181,547.85
73,653.87 114,251.88 177,227.51 274,915.32
25,042.31 38,845.64 60,257.35 93,471.21
48,611.55 75,406.24 116,970.16 181,444.11
0.00
0.00
0.00
0.00
25,477.75 39,521.09 61,305.11 95,096.49
12,738.88 19,760.54 30,652.56 47,548.25
35,872.68 55,645.69 86,317.60 133,895.86
6.00
7.00
8.00
9.00
0.50
0.45
0.40
0.36
18,080.30 25,019.60 34,622.24 47,910.42

493,500.31
281,617.03
426,448.64
144,992.54
281,456.10
0.00
147,513.68
73,756.84
207,699.26
10.00
0.32
66,298.66

Value of perpetuity

2,667,826.39 Terminal value

10.00
0.32
851,583.72