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2 Consider the following financial information about stock ABC: High Growth Stage (5 years) 15% $750m 8% g EBIT * (1-T) WACC CAPEX Depreciation ANCWC

2 Consider the following financial information about stock ABC: High Growth Stage (5 years) 15% $750m 8% g EBIT * (1-T) WACC CAPEX Depreciation ANCWC Market Value of Debt Cash Number of shares $350m $150m -$200m $17,000m $10,000m 1,500m g Stable Growth Stage 2% Using the information provided above, what is the target price of this firm? a) $10 b) $12 c) $14 d) $16 Hint: Use an Excel spreadsheet to calculate your

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