Question
Question 52 1 pts 4Ever Manufacturing, Inc. has the below information derived from its financial statements. Assume that growth over the next 4 years will
4Ever Manufacturing, Inc. has the below information derived from its financial statements. Assume that growth over the next 4 years will be 10% followed by an EV/EBITDA exit multiple of 14. If EBITDA is forecast to be 7,685 in 4 years, then what is the intrinsic value of the companys common equity shares per share (i.e. your price target)? (TTM means Trailing Twelve Months)
Net Income (TTM, mil.$) | 3,000.0 |
FCFF (TTM, mil.$) | 4,500.0 |
Interest Expense (TTM, mil.$) | 800.0 |
Book Value Debt Outstanding (mil.$) | 40,000.0 |
Preferred Equity Shares (mil.$) | 3,500.0 |
Cash and Equivalents (mil.$) | 5,000.0 |
Minority Interest (mil. $) | 950.0 |
Additional Paid-In Capital (APIC, mil.$) | 11,500.0 |
|
|
Weighted Avg. Diluted Shares (mil.) | 1,000.0 |
Dividend ($ per share, TTM) | 1.00 |
Expected growth rate of dividends | 9.00% |
|
|
WACC | 6.50% |
Cost of Equity Capital | 13.50% |
Effective Tax Rate | 22.00% |
Market beta | 1.10 |
Risk-free rate | 1.75% |
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Scaling Up Compensation 5 Design Principles For Turning Your Largest Expense Into A Strategic Advantage
Authors: Verne Harnish, Sebastian Ross
1st Edition
1955884188, 978-1955884181
