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Excel with formulas. No decinals. Thank you*************** There is no discount rate posted to the question. Should I ask my instructor about that. This question
Excel with formulas. No decinals. Thank you***************
There is no discount rate posted to the question. Should I ask my instructor about that. This question is very difficult for me.
It is the end of 2018. In the most recent year (2018), UPipe had an EBIT of $100 million. Depreciation was $20 million, increase in net working capital was $10 million and capital investment was $25 million. Over the next 4 years, EBIT is expected to grow by 20% per year, depreciation by 15% per year, capital expenditure by 25% per year and change in net working capital by 15% per year. The annual cash flow is expected to grow by 2% per year after 2022. The weighted average cost of capital is 8% and the average tax rate is 21%. The firm has $600 million of debt and 10 million shares outstanding. * Attempt 1/1 for 5 pts. Part 1 What was the cash flow in 2018 (in S million)? No decimals Submit * Attempt 1/1 for 5 pts. Part 2 What is the expected cash flow in 2022 (in S million)? Submit * Attempt 1/1 for 5 pts. Part 3 What is the terminal value in 2022 (in S million)? No decimals Submit * Attempt 1/1 for 5 pts. Part 4 What is the firm value today (in $ million)? No decimals Submit * Attempt 1/1 for 5 pts. Part 5 What should be the stock price now? No decimals SubmitStep by Step Solution
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