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You are building a free cash flow to the firm model . You expect sales to grow from $1.6 billion for the year that just
You are building a free cash flow to the firm model . You expect sales to grow from $1.6 billion for the year that just ended to $1.84 billion five years from nowAssume that the compas will not become any more or less efficient in the future. Assume that the company will grow at a constant rate for 5 years, and then at a constant rate of 2.334672% for year and onward after that. Use the following information to calculate the value of the equity on a per -share basis.
A. Assume that the company currently has $528 million of net PPE
B. The company currently has $176 million of net working capital.
C. The company has operating margins of 10 percent and has an effective tax rate of 30 percent.
D.The company has a weighted average cost of capital of 9 percent. This is based on a capital structure of two-thirds equity and one -third debt.
E. The firm has 2 million shares outstanding . Do not round intermediate calculations . Round your answer to the nearest cent
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