### Modest growth assumptions for the forecast

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VALUATION SECTION

Please value the following company under three different scenarios. The capital structure and WACC is the same under each scenario.

No Growth: This scenario is a typical ‘no growth' scenario where there are some modest growth assumptions for the forecast period but long term expectations are that competition will eliminate excess profits resulting in a scenario where WACC = ROIC and growth for year 6 and beyond is expected to be 0%.

Growth: This scenario is a ‘growth' scenario where there is robust revenue growth for the next five years expected and then year 6 and beyond is expected to have continued growth and will be able to maintain the competitive edge resulting in ROIC > WACC.

Harvesting: This scenario is characterized by declining revenue and reduced levels of NOPAT reinvestment. Residual value has a negative growth rate.

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