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The following information is available for a company, Sunshine Ltd. Cost of equity =12% Weighted average cost of capital (WACC)=10% Market Capitalisation at the beginning
The following information is available for a company, Sunshine Ltd. Cost of equity =12% Weighted average cost of capital (WACC)=10% Market Capitalisation at the beginning of FY2023 =$120m Number of shares outstanding =12m Net financial obligation (NFO) at the beginning of FY2023 =$18m It is estimated that Sunshine Ltd will generate free cash flows (FCF) of $6.6m in FY 2023 and $7.26m in FY2024 respectively. After FY 2024 , free cash flows are expected to grow at a constant rate forever. Round-off your answers up to one place of decimal (For example, 1.56 should be rounded off as 1.6;1.55 should be rounded off as 1.6;1.54 should be rounded off as 1.5;10% should be written as 10 ). Do not use dollar sign (\$), comma (,), or percentage (\%) in your answers. What is the implied terminal growth rate for Sunshine Ltd
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