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Intro In the most recent year (2021), MyBend had an EBIT of $680 million. Depreciation was $136 million, increase in net working capital was $68
Intro In the most recent year (2021), MyBend had an EBIT of $680 million. Depreciation was $136 million, increase in net working capital was $68 million and capital expenditure was $170 million. Over the next 4 years, EBIT is expected to grow by 25% per year, depreciation by 20% per year, capital expenditure by 30% per year and change in net working capital by 10% per year. The free cash flows are expected to grow by 2% per year after 2025. The weighted average cost of capital is 8% and the average tax rate is 32%. The firm has $900 million of debt and 43 million shares outstanding. Part 1 Attempt 1/10 for 10 pts. What is the expected free cash flow in 2025 (in \$ million)? Part 2 Attempt 1/10 for 10 pts. What is the value of the stock now
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