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plz help asap will leave first question is to understand second question only answer second question Adjusted Cash Flow from Assets [ [S LO3] Derry

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plz help asap will leave first question is to understand second question only answer second question

Adjusted Cash Flow from Assets [ [S LO3] Derry Corp. is expected to have an EBIT of $2.1 million next year. Increases in depreciation, the increase in net working capital, and capital spending are expected to be $165,000, $80,000, and $120,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $10.4 million in debt and 750,000 shares outstanding. After Year 5 , the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company's WACC is 8.5 percent and the tax rate is 21 percent. What is the price per share of the company's stock? 5. Adjusted Cash Flow from Assets [ LO3] In the previous problem, instead of a perpetual growth rate in adjusted cash flow from Page 499 assets, you decide to calculate the terminal value of the company with the price-sales ratio. You believe that Year 5 sales will be $23.7 million and the appropriate price-sales ratio is 2.9. What is your new estimate of the current share price

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