Question
A company is expected to have an EBIT of $1.9 million next year. Depreciation, the increase in net working capital, and capital spending are expected
A company is expected to have an EBIT of $1.9 million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $0.165 million, $0.085 million, and $0.115 million, respectively. All are expected to grow at 18% per year for three years. The company currently has $13 million in debt and 0.8 million shares outstanding. After Year 4, the adjusted cash flow from assets is expected to grow at 3% indefinitely. The company's WACC is 8.5% and the tax rate is 35%.
| Year 1 | Year 2 | Year 3 | Year 4 | |
| EBIT | 1.9 | |||
| Depreciation | 0.165 | |||
| Taxes (35%) | ||||
| Change in NWC | 0.085 | |||
| Capital Spending | 0.115 | |||
| Cash flow from Assets | ||||
| What is the firm value in Year 4? | ||||
| What is the firm value now? | ||||
| What is the value of equity? | ||||
| What is the stock price per share? | ||||
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Marketplace Lending Financial Analysis And The Future Of Credit Integration Profitability And Risk Management
Authors: Ioannis Akkizidis, Manuel Stagars
1st Edition
1119099161, 978-1119099161
