1˚ year

2˚ year

3˚ year

4˚ year

5˚ year

6˚ year

7˚ year

8˚ year

9˚ year

Net Income

112

115

119

122

126

130

134

138

142

(+) Depreciation

9

9

10

10

10

10

11

11

11

(−) Net Increase in Loans

105

108

111

115

118

122

125

129

133

(−) Net Increase in Securities and Investments

10

10

10

10

10

10

10

10

20

(−) Net Increase in Amounts due from Banks

12

12

12

12

12

12

12

12

22

(−) Net Capital Expenditure

14

15

15

16

16

17

17

18

18

(+) Net Increase in Deposits

95

97

100

103

106

110

113

116

120

(+) Net Increase in Interbank Funds

35

28

29

29

29

30

30

30

49

Equity Cash Flow

109

106

109

112

115

119

122

126

129

Robustness check for the calculation of FCFE (second method, Koller Goedhart and Wessels, 2005 [1] )

(+) Dividends and Potential divIdends

109

106

109

112

115

119

122

126

129

(−) Share Capital Issue (Repurchase)

-

-

-

-

-

-

-

-

-

Equity Cash Flow (ECF)

109

106

109

112

115

119

122

126

129

Present Value of ECF

99* (0.909)**

87 (0.826)

82 (0.751)

77 (0.683)

72 (0.621)

67 (0.565)

63 (0.513)

59 (0.466)

Terminal Value

-

-

-

-

-

-

-

-

1420***

Present value of Terminal Value

-

-

-

-

-

-

-

-

662**** (0.424)**

EQUITY VALUE: Present Value of ECF + Present Value of terminal value = 605 + 662 = 1267