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The forecast for Arctic Sled's free cash flows for next year is provided in the table. Assume that free cash flow is paid at the
The forecast for Arctic Sled's free cash flows for next year is provided in the table. Assume that free cash flow is paid at the end of each year and we are at the beginning of a year. Last year's values are for the year-end yesterday. Analysts expect Arctic Sled's cash flow to remain constant at next year's level in perpetuity. The WACC for Arctic Sled is 5%. What is the fair price for Arctic Sled's shares today? Click the icon to view financial information for Arctic Sled Company : The fair price for each of Arctic Sled's shares today is $ (Round to the nearest cent as needed.) Financial Information Sales Selected Financial Information Arctic Sled Company (in thousands) Last Year $1,974,418 Depreciation $34,080 EBIT $159,566 Tax Rate, T 38.99% Net Working Capital - $49,147 Net Property and Equipment $285,272 Long-Term Debt $21,000 Shares Outstanding 5,000 Next Year $2,068,100 $36,026 $168,537 38.99% - $51,485 $297,978 $21,000 5,000 Print Done
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