Question 10 Homework Unanswered You are valuing Soda City Inc. It has $125 million of debt, $80 million of cash, and 175 million shares outstanding. You estimate its cost of capital is 10.5%. You forecast that it will generate revenues of $720 million and $780 million over the next two years. Projected operating profit margin is 30%, tax rate is 25%, reinvestment rate is 40%, and terminal exit value multiple at the end of year 2 is 12. What is your estimate of its share price? Round to one decimal place. (Hint: Compute projected FCFF for years 1 and 2 based on info provided, compute terminal value using the exit multiple method, discount it all to find EV, walk the bridge to Equity divide by number of shares outstanding