Question
Consider a company thats projected to generate revenues of $211 million next year with an operating margin of 41%. The companys tax rate is expected
Consider a company thats projected to generate revenues of $211 million next year with an operating margin of 41%. The companys tax rate is expected to be 20% and it is projected to have a reinvestment rate of 53%. After that, the company is expected to start growing its free cash flows at a stable rate of 2% in perpetuity (terminal phase starts after year 1). The company's cost of capital is 13.7%. It has $59 million of debt and $5 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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