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1). Find the Price per share of this company for the end of year 1. Rune a sensitivity analyses and show how this price per
1). Find the Price per share of this company for the end of year 1. Rune a sensitivity analyses and show how this price per share will change if the discount rate is 10.5% Year 1 Year 2 Year 3 Year 4 Year 5 Year o 2,950,000 235,000 1,032,500 $ $ 475,000 105,000 EBIT Depreciation Change in NWC Capital spending Increase per year EBIT Depreciation Change in NWC Capital spending Value of debt Shares outstanding Terminal growth rate WACC Tax rate Year O values $ 2,950,000 EBIT $ 235,000 Depreciation $ 105,000 Taxes* $ 475,000 OCF Capital spending 15% Change in NWC 20% CFFA 10% 20% Year 6 CFFA $ 19,500,000 Terminal value 400,000 3.50% Company value 8.91% Value of equity 35% Price per share
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