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CHI Company anticipates next year's capital expenditures will be $ 1 5 million, expects a $ 3 . 2 5 million decrease in net working
CHI Company anticipates next year's capital expenditures will be $ million, expects a $ million decrease in net working capital, predicts sales will be $ million, operating expenses will be $ million, depreciation expense will be $ million, and interest expense will be $ million. CHI's tax rate is and the weighted average cost of capital WACC is The company has million shares outstanding which currently trade for $ per share and has $ million of longterm debt. You expect s free cash flow to the firm to grow by for one year year to then per year forever. A What is the intrinsic price per share of CHI's equity using the free cash flow model? Are they overvalued, undervalued, or correctly valued?
CHI Company anticipates next year's capital expenditures will be $ million, expects a $
million decrease in net working capital, predicts sales will be $ million, operating
expenses will be $ million, depreciation expense will be $ million, and interest expense
will be $ million. CHI's tax rate is and the weighted average cost of capital WACC is
The company has million shares outstanding which currently trade for $ per share
and has $ million of longterm debt. You expect s free cash flow to the firm to grow by
for one year year to then per year forever.
A What is the intrinsic price per share of CHI's equity using the free cash flow model? Are they
overvalued, undervalued, or correctly valued?
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