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The following table presents forecasted financial and other information for Gargery Industries: 2019 2020 2021 Projected EBIT $ 317 $ 339 $ 382 Earnings after
The following table presents forecasted financial and other information for Gargery Industries: 2019 2020 2021 Projected EBIT $ 317 $ 339 $ 382 Earnings after tax 197 210 229 Free cash flow 135 144 167 Gargery's WACC 8.2% Expected growth rate in FCFs after 2021 4.0% Warranted MV firm/FCF in 2021 19.4 Warranted P/E in 2021 18.7 What is an appropriate estimate of Gargery's terminal value as of the end of 2021 using a warranted price-to-earnings multiple as your estimate
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
16th Edition
324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140
