Question
Suppose we know the following information 1. Revenue will grow by 4% annually on a go forward basis 2. Cost of goods Sold will be
Suppose we know the following information
1. Revenue will grow by 4% annually on a go forward basis
2. Cost of goods Sold will be 43% of Revenue
3. SG&A will be 12% of Revenue
4. Free Cash to the Firm is forecast to equal 5% of Revenue in perpetuity
5. Revenue for the current year is forecast to equal $2,500,000.
6. The Company's WACC is 8%.
7. The Company has debt of $1,000,000
8. The Company has Cash of $500,000.
9. The Company has 100,000 shares outstanding.
What is the value/share of the Company's shares assuming the value is calculated as the present value of future cash flows?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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