Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

show your work please! Executive Cheese 2021 Balance Sheet and Income Statement are in the next slide. Analysts expect the following: Revenue growth: 20% in

image text in transcribed
show your work please!
Executive Cheese 2021 Balance Sheet and Income Statement are in the next slide. Analysts expect the following: Revenue growth: 20% in 2022,5% in 2023 Operating Costs \% Revenue: 85% in 2022, 85\% in 2023. Capex: $400 in 2022, $300 in 2023 Depreciation expense equals 80% of Capex NWC \% Revenue: 16% in 2022,16% in 2023. Terminal growth =4% WACC =8%, Tax rate =25%,150 shares outstanding Apply the DCF model to obtain the value of Executive Cheese common stock (per share)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

13th edition

132743469, 978-0132743464

More Books

Students also viewed these Finance questions

Question

Focus on three or four areas.

Answered: 1 week ago