Question
Here is some data about Classtime Corp (all $ are in 000s): Sales for last year were $822,000. Sales are predicted to grow at 8.5%
Here is some data about Classtime Corp (all $ are in 000s):
Sales for last year were $822,000. Sales are predicted to grow at 8.5% for years 1-5 and 4% after that.
The following are expressed as a % of sales:
COGS % of Sales 39%
Gr Assets % of Sales 36%
Inv. % of Sales 22%
Assume Inventory is the only working capital account. Depreciation is 16% of Gross Fixed Assets. The companys tax rate is 21%. Classtime Corp. has a WACC of 13%. The market value of bonds is $400,000.
They have 80 million shares of common stock outstanding. Compute the value per share of Classtime Corp. using excel. (years 0-6)
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