Chewy Corporation is an all equity firm Sales next year are expected to be $500 million and will grow at the rate of 10 percent over the following two years Depreciation is expected to be 20 percent of sales and with other costs occupying 40 percent of sales The tax rate is 40 percent A ) If next investment in net working capital and capital spending occupy 10 percent of sales, compute Chewy's free cash flow (FCF) for years 1 through 3 B ) If after year 3, sales are assumed to grow at a rate of 6 percent into the foreseeable future, what is the estimated price of Chewy's stock today based on the future free cash flows (assume there are 12 million shares of stock outstanding)

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Chewy Corporation is an all equity firm  Sales next year are expected to be $500 million and will grow at the rate of 10 percent over the following two years  Depreciation is expected to be 20 percent of sales and with other costs occupying 40 percent of sales  The tax rate is 40 percent  A ) If next investment in net working capital and capital spending occupy 10 percent of sales, compute Chewy's free cash flow (FCF) for years 1 through 3  B ) If after year 3, sales are assumed to grow at a rate of 6 percent into the foreseeable future, what is the estimated price of Chewy's stock today based on the future free cash flows (assume there are 12 million shares of stock outstanding)

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Chewy Corporation is an all equity firm. Sales next year are expected to be $500 million and will grow at the rate of 10 percent

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