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5,6&7 please Consider a company that is projected to generate revenues of $195 million next year. Analysts expect revenues to grow at a 5.0% annual
5,6&7 please
Consider a company that is projected to generate revenues of $195 million next year. Analysts expect revenues to grow at a 5.0% annual rate for the following two years (until the end of year 3 ) and then at a stable rate of 2.7% in perpetuity. If the company is expected to have a gross margin of 75%, operating margin of 60%, net margin of 25%, tax rate of 11.0%, and reinvestment rate of 63%, what is its expected free cash flows in four years from today? Answer in millions, rounded to one decimal place (e.9. $2,315,612=2.3). QUESTION 6 Consider a company that is forecasted to generate free cash flows of $21 million next year and $24 million the year after. After that, cash flows are projected to grow at a stable rate of 1.9% in perpetuity. The company's cost of capital is 8.2%. The company has $42 million in debt, 511 million of eash. and 22 million shares outstanding. How much is each share worth? Round to one decimal place. QUESTION 7 A company had total revenues of $58 million, operating margin of 26.8%, and depreciation and amortization expense of $24 million over the trailing twelve months. The company currently has $253 million in total debt and $79 million in cash and cash equivalents. The company's shares are currently trading at $32.2 per share and there are 9 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place Step by Step Solution
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