Question
Select a public company that you personally interested in. Each student must pick a different company. The company is McKesson 1. Assume that the companys
Select a public company that you personally interested in. Each student must pick a different company. The company is McKesson
1. Assume that the companys sales are expected to grow 7% per year for 5 years. EBIT margin per year will remain constant for the next 5 years. The tax rate is 17%. Depreciation per year will remain constant for the next 5 years. Capital spending per year will remain constant for the next 5 years. Increase in non-cash working capital as a percent of sales will be 2%. Compute the firm value, the equity value, and the value per share. Briefly interpret your results. Show all your detailed computations to receive full credit.
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