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Intro In the most recent year (2019), UPipe had an EBIT of $120 million. Depreciation was $24 million, increase in net working capital was $12
Intro In the most recent year (2019), UPipe had an EBIT of $120 million. Depreciation was $24 million, increase in net working capital was $12 million and capital expenditure was $30 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 working capital investment by 15% per year. The annual free cash flow is expected to grow by 5% per year after 2023. The weighted average cost of capital is 15% and the average tax rate is 34%. The firm has $560 million of debt and 10 million shares outstanding. Part 1 IB Attempt 2/10 for 10 pts. What was the free cash flow in 2019 (in $ million)? 0+ decimals Submit Part 2 - Attempt 2/10 for 10 pts. What is the expected free cash flow in 2023 (in $ million)? 0+ decimals Submit - Attempt 2/10 for 10 pts. Part 3 What is the terminal value in 2023 (in $ million)? 0+ decimals Submit Part 5 - Attempt 2/10 for 10 pts. What is the stock price today? 1+ decimals Submit
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