Question
Alpha Corporation reported the following financial details for the financial year 2021. Revenue is $250 million. EBITDA margin is 45%, D&A is $20 million. Interest
Alpha Corporation reported the following financial details for the financial year 2021. Revenue is $250 million. EBITDA margin is 45%, D&A is $20 million. Interest expense is $5 million. Interest & dividend income is $15 million. The tax rate applicable for the firm is 20%. The basic number of shares were 5 million, and diluted number of shares were 5.25 million. The firms dividend payout is 50% in the current year. The dividend growth is expected to be 10% for 5 years and stabilize at 6% thereafter. The firm uses a cost of equity of 13%. Determine the value per share.
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