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can you answer this question for me please ? Texlas has sales revenues currently of $145 million (TO). The WACC is 8%. Operating expenses, not
can you answer this question for me please ?
Texlas has sales revenues currently of $145 million (TO). The WACC is 8%. Operating expenses, not including depreciation, are estimated at 77% of sales while depreciation averages 7% of sales. These relationships are expected to hold indefinitely. The CFO has noted that Texlas plans on investing $11 million in expanding overseas and will require additional working capital of $7 million to support sales the new sales growth. Both investments are expected to occur immediately. Because Texlas believes it mature, it expects its free cash flow to the firm to grow at a constant 4% rate in perpetuity. Texlas has a tax rate of 35%. Texlas currently holds $11.75 million of nonoperating marketable securities in excess of its normal operating needs. Its long term debt is $25 million. Texlas has 50,000 shares of stock outstanding. Texlas has never paid a dividend and does not expect to pay one in the future. What is the value of Texlas's operations today? (Options below are in millions of \$) $7.23 $25.23 $180.75 $187.98 None of those listed
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