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A Suntrust Robinson analyst presents you with the following forecasts for sales per sharo, sales growth rate profit margin, fixed and working capital investment, and

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A Suntrust Robinson analyst presents you with the following forecasts for sales per sharo, sales growth rate profit margin, fixed and working capital investment, and expected debt financing over 2014-2019 for GC capital that went public in 2011 Sales per share is S15 in 2013 Sales growth rate is 45 over 2014-2015 and 5% over 2016-2019 . After 2019, Suntrust Robinson is expecting an initini four-year period growth of 6% in FCFE GC Capital is then expected to increase its FCFE growth rate at 10% per year as the company matures up, and analysts allow a 10-year period for this linear transition from 6% to 10% Net profit margin is fixed at 15% . luvestment in fixed capital 40% of increase in sales Antun increase in working capital-10% of increase in sales Debt Financing 50% of net investments in capital equipment and working capital Pense estimate the stock price of GC Capital if the cost of equity is 13% O $110.47 O $64.50 $154.71 51465 549.31 575.10 A Suntrust Robinson analyst presents you with the following forecasts for sales per sharo, sales growth rate profit margin, fixed and working capital investment, and expected debt financing over 2014-2019 for GC capital that went public in 2011 Sales per share is S15 in 2013 Sales growth rate is 45 over 2014-2015 and 5% over 2016-2019 . After 2019, Suntrust Robinson is expecting an initini four-year period growth of 6% in FCFE GC Capital is then expected to increase its FCFE growth rate at 10% per year as the company matures up, and analysts allow a 10-year period for this linear transition from 6% to 10% Net profit margin is fixed at 15% . luvestment in fixed capital 40% of increase in sales Antun increase in working capital-10% of increase in sales Debt Financing 50% of net investments in capital equipment and working capital Pense estimate the stock price of GC Capital if the cost of equity is 13% O $110.47 O $64.50 $154.71 51465 549.31 575.10

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