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Kymis Industries (KI) is a stratup that sells fermented horse's milk in the US and Canada. This year, their after-tax EBIT is $1M USD. For
Kymis Industries (KI) is a stratup that sells fermented horse's milk in the US and Canada. This year, their after-tax EBIT is $1M USD. For the next four years after this year, they expect this number to be five times larger than the previous year's figure. They have no depreciation, but must spend $10M USD each year in Capex. Working capital totals 10% of after-tax EBIT each year. After year 5, growth slows dramatically, such that free cash flow grows at 3% per year. What is the value of KI if the appropriate discount rate is 12%? Show your work
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