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In company X regarding year N, it was possible to obtain the following data (thousand euros): - Question III - The net investment is
In company X regarding year N, it was possible to obtain the following data (thousand euros): - Question III - The net investment is 400 and the working capital change os negative of -1.100. The EBIT is 6.850 and the tax rate of companies is 25%. The predicted growth rates for the Free Cash Flow for the following years are: 5% between N+1 and N+4. The perpetuity period starts N+5 and the growth rate in perpetuity is 2%. The Weighted Average Cost of Capital is 7%. The debt of the company is 20.000, due to a zero-coupon bond issue with repayment at par in 5 years. The YTM of bonds with similar risk is 3%. The paid-in capital is represented by 20.000.000 shares, with a nominal value of 1 euro each. Requests: 1. Calculate the Free Cash Flow for year N. 2. Calculate the value per share for year N.
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