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You are trying to value JUNK., an streaming service of TV shows and movies. Junk sales are expected to be $ 1 1 0 million
You are trying to value JUNK., an streaming service of TV shows and movies. Junk sales are expected to be $ million one year from now year and $ million two years from now in year In all future years ie year through infinity its costs of goods sold together with SG&A will be of sales, R&D will be of sales, and its net working capital will be sales. In all future years, JUNK will not have any capital expenditure or depreciation.Currently year the market value of debt for JUNK is $ million, its net working capital is $ million, and it has $ million shares outstanding. Junk does not have any excess cash on its balance sheet. The firm faces a tax rate and its weighted average cost of capital is Please show all calculations and work: What is the estimate of the JUNK net working capital in year and year What are the free cash flows to JUNK in year and year Suppose that firms free cash flows after year will grow by indefinitely, what is the enterprise value of JUNK as of now based on the discounted free cash flow DFCF model? What is the current stock price of JUNK?
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