24. Company valuation Chiara Company's management has made the projections shown in Table 19.5. 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 ZAR 5 million of debt and 865,000 shares outstanding. What is the value per share? Table 19.5 Cash flow projections for Chiara Corp. (ZAR thousands) Historical Forecast Year -2 -1 0 1 2 3 4 5 1. Sales 35,348 39,357 40,123 36,351 30,155 28,345 29,982 30,450 2. Cost of goods sold 17,834 18,564 22,879 21,678 17,560 16,459 15,631 14,987 3. Other costs 6,968 7,645 8,025 6,797 5,078 4,678 4,987 5,134 4. EBITDA (1 - 2 - 3) 10,546 13,148 9,219 7,876 7,517 7,208 9,364 10,329 5. Depreciation 5,671 5,745 5,678 5,890 5,670 5,908 6,107 5,908 6. EBIT (Pretax profit) (4 - 5) 4,875 7,403 3,541 1.986 1,847 1,300 3,257 4,421 7. Tax at 28% 1.365 2,073 991 556 517 364 912 1.238 8. Profit after tax (6-7) 3,510 5,330 2,550 1,430 1,330 936 2,345 3,183 9. Change in working capital 325 566 784 -54 -342 -245 127 235 10. Investment (change in gross fixed assets) 5,235 6,467 6,547 7,345 5,398 5,470 6,420 6,598