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5. You are building a free cash flow to the firm model. You expect sales to grow from $2 billion fortheyearthajustendedo$3 billionfiveyearfromnowAssumthathecompanwill notbecomanymoreorlessefficient thefutureUsethefollowingnformationno calculate

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5. You are building a free cash flow to the firm model. You expect sales to grow from $2 billion fortheyearthajustendedo$3 billionfiveyearfromnowAssumthathecompanwill notbecomanymoreorlessefficient thefutureUsethefollowingnformationno calculate thevalueof theequit ona persharbasis 1. Assumthathecompanyurrentilyas$600millionofnetPP&E. 2. Thecompanyurrentilyas$200millionofnetworkingcapital 3. Thecompanbasoperating arginof 10percenandhasaneffectiveaxratef32 percent 4. Thecompanbasa weightedverageostof capitabf8 percenthisis basedna capital structureftwothirdequityandonethirddebt 5. Thefirmhas1 millionshareoutstanding Do notroundntermediatalculationBoundyouranswerothenearestent

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