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40 You have been asked to value AstraMonika, a Biopharmaceutical company and have come up with the following inputs. . Base Year Information (2020) Earnings
40
You have been asked to value AstraMonika, a Biopharmaceutical company and have come up with the following inputs. . Base Year Information (2020) Earnings before interest and taxes in 2020 =$600 million Capital expenditures in 2020 = $120 million Depreciation in 2020 = $100 million Revenues in 2020 = $6,000 million Working capital as percent of revenues = 20% Tax rate = 40% . . High-Growth Phase Length of high-growth phase = 5 years Expected growth rate in FCFF=15% Beta = 1.30 Cost of debt = 8% (pre-tax) Debt ratio = 30% Risk-free rate = 7% Market Risk Premium (MRP) = 6% Stable-Growth Phase Expected growth rate in FCFF= 3% Beta = 1.5 Cost of debt =7% (pre-tax) Debt ratio = 25% Risk-free rate = 7% Market Risk Premium (MRP) = 6% 40 of 40 Suppose Astra Monika has 200 million outstanding shares and $1.5 billion in debt, what is the value of Astra Monika's stock based on this information? O A $17.99692 OB. $16.78265 OC. $16.23215 OD. $16.34872 E. None of the above Unsure You have been asked to value AstraMonika, a Biopharmaceutical company and have come up with the following inputs. . Base Year Information (2020) Earnings before interest and taxes in 2020 =$600 million Capital expenditures in 2020 = $120 million Depreciation in 2020 = $100 million Revenues in 2020 = $6,000 million Working capital as percent of revenues = 20% Tax rate = 40% . . High-Growth Phase Length of high-growth phase = 5 years Expected growth rate in FCFF=15% Beta = 1.30 Cost of debt = 8% (pre-tax) Debt ratio = 30% Risk-free rate = 7% Market Risk Premium (MRP) = 6% Stable-Growth Phase Expected growth rate in FCFF= 3% Beta = 1.5 Cost of debt =7% (pre-tax) Debt ratio = 25% Risk-free rate = 7% Market Risk Premium (MRP) = 6% 40 of 40 Suppose Astra Monika has 200 million outstanding shares and $1.5 billion in debt, what is the value of Astra Monika's stock based on this information? O A $17.99692 OB. $16.78265 OC. $16.23215 OD. $16.34872 E. None of the above Unsure Step by Step Solution
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