Question
Albert Co. is thinking about an IPO. Alberta Co. hired you as an analyst to evaluate the valuation its stock. In the table below
Albert Co. is thinking about an IPO. Alberta Co. hired you as an analyst to evaluate the valuation its stock. In the table below are some of the information you have collected. Steady state is assumed to be reached at year 5. Please use perpetual growth model to estimate terminal value. What is the per share value of Alberta Co.? Revenue Estimated Year 0 $ Revenue Growth rate Sales/PPE COGS/Sales NWC turnover Depreciation/PPE Tax rate Terminal growth rate # shares Debt value WACC $ 8,300 5% 3 60% 10 15% 40% 2.3% 600 8,000 10%
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
17th Edition
032459237X, 978-0324592375
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