Based on your research, the appropriate MV/EBIT multiple to use in 2025 is 10. Use this revised multiple to calculate the per share value of Island Expeditions stock.

Group of answer choices

A. $28.43

B. $25.38

C. $24.96

D. $28.27

Island Expeditions, Inc., a privately held company, is interested in knowing the value of their stock on a per share basis as a Venture Capital firm has approached their CEO about buying the company. It currently has 50 million shares outstanding. The firm also has $850 million in debt outstanding and a marginal tax rate of 40%. It estimates it has a WACC of 14%. Island Expeditions Financial Forecast is below: 2020 (Today) 2021 2022 2023 2024 2025 Revenue 500.00 550.00 605.00 665.50 732.05 768.65 Net Income 100.00 110.00 121.00 133.10 2.40 2.64 2.90 3.19 146.41 153.73 3.51 3.69 Interest (1-T) NOPAT 102.40 112.64 123.90 136.29 149.92 157.42 Depreciation 300.00 330.00 363.00 399.30 439.23 461.19 Capital Expenditure 200.00 220.00 242.00 266.20 292.82 307.46 Investment in wc 37.50 41.25 45.38 49.91 54.90 57.65 Island Expeditions, Inc., a privately held company, is interested in knowing the value of their stock on a per share basis as a Venture Capital firm has approached their CEO about buying the company. It currently has 50 million shares outstanding. The firm also has $850 million in debt outstanding and a marginal tax rate of 40%. It estimates it has a WACC of 14%. Island Expeditions Financial Forecast is below: 2020 (Today) 2021 2022 2023 2024 2025 Revenue 500.00 550.00 605.00 665.50 732.05 768.65 Net Income 100.00 110.00 121.00 133.10 2.40 2.64 2.90 3.19 146.41 153.73 3.51 3.69 Interest (1-T) NOPAT 102.40 112.64 123.90 136.29 149.92 157.42 Depreciation 300.00 330.00 363.00 399.30 439.23 461.19 Capital Expenditure 200.00 220.00 242.00 266.20 292.82 307.46 Investment in wc 37.50 41.25 45.38 49.91 54.90 57.65