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Please fill out in the chart format A company had $18 of sales per share for the year just ended. You expect the company to
Please fill out in the chart format
A company had $18 of sales per share for the year just ended. You expect the company to grow their sales at 6.5 percent for the next five years. After that, you expect company to grow 3.5 percent in perpetuity. The company has a 14 percent ROE and you expect that to continue forever. The company's net margins are 6 percent and the cost of equity is 11 percent. Using the free cash flow to equity model to value this stock. Cash Flow Breakdown Perpetual Growth at 3.5% Growth at 6 percent per year Year 2 3 4 5 6 Sales por Shose x(119 1918 X (14:065) 3 19.17X(14,065) 20528(1 4:065) 21,54x114,025) 23 33x (11 565) 241.20 x (14.023) 21.64 =32032 22.16 =$24.66 =325.52 = $19:17 Sales (S) 19.17 X 6910 do t bao i b Kho i l kh 24.62x63 25.52 x 66 Sales y 63% 1. 15 1.30 1. 48 1.39 1.22 1.53 EPS (Net Margin) 1065 -M RE: Year Pay ou vous 1-46.43%= -=46.43% EPS PO 69 74 79 3 23.37611 Free Cash Flow to Equity Total Cash Flows: Present Value of Cash Flows: .65- ft. .033 30= 25% Pay on 1-257 1.15/11-0 Step by Step Solution
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