Exercise 2 Value the shares of Pulitzer Co. The modeling assumptions are: Current sales are $60 million. They will grow at 30% annually for the first four years, and then grow at 6% annually thereafter. Net income will be 10% of sales. The net investment in fixed capital will be 50% of the sales increase each year The investment in working capital will be 10% of the sales increase. Debt financing will be 40% of the net investments in fixed capital and working capital each year The required rate of return for equity is 11%. There are 2 million outstanding shares. What is the intrinsic value per share of Pulitzer? Exercise 2 Value the shares of Pulitzer Co. The modeling assumptions are: Current sales are $60 million. They will grow at 30% annually for the first four years, and then grow at 6% annually thereafter. Net income will be 10% of sales. The net investment in fixed capital will be 50% of the sales increase each year The investment in working capital will be 10% of the sales increase. Debt financing will be 40% of the net investments in fixed capital and working capital each year The required rate of return for equity is 11%. There are 2 million outstanding shares. What is the intrinsic value per share of Pulitzer