| 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 |
(−) Cost of the Capital Employed (Equity b.o.y. * Cost of Equity 10%) | 33 | 33 | 34 | 35 | 36 | 38 | 39 | 40 | 41 |
Residual Income | 79 | 82 | 85 | 87 | 90 | 92 | 95 | 98 | 101 |
Present Value of Residual Income | 72* (0.909)** | 68 (0.826) | 64 (0.751) | 60 (0.683) | 56 (0.621) | 52 (0.565) | 49 (0.513) | 46 (0.466) | - |
Terminal Value | - | - | - | - | - | - | - | - | 1010*** |
Present Value of Terminal Value | - | - | - | - | - | - | - | - | 471**** (0.4241)** |
Equity Value: Equity (b.o.y) + Present Value of Residual Income + Present Value of Terminal Value = 329 + 467 + 471 = 1267 |