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OfficePLUS AB 5 2. Toybus Inc. a manufacturer of toys, just reported that its main production facility in Vietnam was destroyed in fire. While the
OfficePLUS AB 5 2. Toybus Inc. a manufacturer of toys, just reported that its main production facility in Vietnam was destroyed in fire. While the plant was fully insured, the loss of production will decrease Toybus's free cash flow by $180 million at the end of this year, and by $60 million at the end of the next year. If Toybus has 35 million shares outstanding and a weighted average cost of capital of 13%, what change in Toybus' stock price would you expect upon this announcement? (Assume the debt and cash is not affected by the event). (9 points)< 831 () : Q HUAWEI 59 yd W I Chen IMP N 40 229 23:25 2023/12/7
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