Question
The following table presents forecasted financial information for ABC Co. 2022 2023 2024 Projected EBIT $100 $110 $125 Earnings after Tax $35 $38 $43 Free
The following table presents forecasted financial information for ABC Co.
| 2022 | 2023 | 2024 | |
| Projected EBIT | $100 | $110 | $125 |
| Earnings after Tax | $35 | $38 | $43 |
| Free Cash Flow | $55 | $60 | $65 |
ABC Co.s WACC = 10%
Expected growth rate in FCFs from 2024 to infinity is perpetually 4%
Price/Earnings ratio is 15
What is an appropriate estimate of the companys terminal value as of the end of 2021, using the perpetual growth equation as your estimate?
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Who Is Your Competition You Real Estate Wholesaling Questions Answers And Tools To Help Beginners Crush Their Fears And Stop Procrastinating
Authors: Nick Zalonis
1st Edition
1716097193, 978-1716097195
