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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.
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, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 30%, tax rate is 25%, reinvestment rate is 40%, and terminal EV/FCFF exit multiple at the end of year 2 is 12. What is your estimate of its share value? Round to one decimal place. Type your numeric answer and submit Unanswered . 3 attempts left Submit
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