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The following table presents forecasted financial and other information for Havasham Industries: ? 2015 2016 2017 Projected EBIT $ 317 $339 $363 Earnings after tax

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The following table presents forecasted financial and other information for Havasham Industries:

?

image text in transcribed
2015 2016 2017 Projected EBIT $ 317 $339 $363 Earnings after tax 197 210 225 Free cash flow 135 144 155 Havasham's WACC 8. 21 Expected growth rate in FCFs after 4.0% 2017 warranted MV firm/FCF in 2017 19.4 Warranted P/E in 2017 18.7 What is an appropriate estimate of Havasham's terminal value as of the end of 2017 using the perpetual-growth equation as your estimate? Multiple Choice O $161 million O $3,888 million O None of the options are correct. O $3,690 million O $363 million O $5,357 million

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