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Intro In the most recent year (2020), UPipe had an EBIT of $310 million. Depreciation was $62 million, increase in net operating working capital was
Intro In the most recent year (2020), UPipe had an EBIT of $310 million. Depreciation was $62 million, increase in net operating working capital was $31 million and capital expenditure was $77.5 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 operating working capital by 15% per year. The annual free cash flow is expected to grow by 4% per year after 2024. The weighted average cost of capital is 8% and the average tax rate is 34%. The firm has $450 million of debt with an average interest rate of 8% and 10 million shares outstanding. Attempt 1/1 for 10 pts. Part 1 What was the free cash flow in 2020 (in $ million)? 0+ decimals Save Part 2 - Attempt 1/1 for 10 pts. What is the expected free cash flow in 2024 (in $ million)? 0+ decimals Save - Attempt 1/1 for 10 pts. Part 3 What is the horizon value in 2024 (in $ million)? 0+ decimals Save Part 4 Attempt 1/1 for 10 pts. What is the firm value today, at the beginning of 2021 (in $ million)? 0+ decimals Save - Attempt 1/1 for 10 pts. Part 5 What is the intrinsic value of the stock today? 0+ decimals Save
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