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Snowflake generated $ 1 billion in sales last year. It also expects sales to grow at 2% per year in perpetuity. The company NOPAT last
Snowflake generated $ 1 billion in sales last year. It also expects sales to grow at 2% per year in perpetuity. The company NOPAT last year was $ 30 million and expects it also to grow at 2%. The firm is expected to have depreciation of $10 million and capital expenditures of $15 million each year. NWC is expected to be zero. The cost of capital will be 14%. 1) What Snowflakes' free cash flows? 2) What's the enterprise value of the firm? 3) What's the stock price, if the company has $75M in debt, $25 M in cash and 10 million of shares outstanding
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