11. Company valuation (S18-2) Chiara Company’s management has made the projections shown in Table 18.5. Use this table as a starting point to value the company as a whole.

The WACC for Chiara is 12%, and the forecast long-run growth rate after year 5 is 4%. The company, which is located in South Africa, has ZAR5 million of debt and 865,000 shares outstanding. What is the value per share?

Chapter 18 Financing and Valuation 547