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Assume that the companys sales are expected to grow 5% per year for the next 5 years. EBIT margin per year will remain constant for
Assume that the companys sales are expected to grow 5% per year for the next 5 years. EBIT margin per year will remain constant for the next 5 years. The tax rate is 21%. Depreciation per year will remain constant for the next 5 years. Capital spending per year will remain constant for the next 5 years. Increase in non-cash working capital as a percent of sales will be 2%. Compute the equity value per share. Briefly interpret your results
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