Question
Consider a company thats projected to generate revenues of $184 million next year with an operating margin of 43%. The companys tax rate is expected
Consider a company thats projected to generate revenues of $184 million next year with an operating margin of 43%. The companys tax rate is expected to be 21% and it is projected to have a reinvestment rate of 49%. After that, the company is expected to start growing its free cash flows at a stable rate of 1.9% in perpetuity (terminal phase starts after year 1). The company's cost of capital is 9.9%. It has $44 million of debt and $15 million in cash. There are 11 million shares outstanding. How much is each share worth based on these projections? Round to one decimal place.?
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