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You are valuing Soda City Inc. It has $143 million of debt, $73 million of cash, and 193 million shares outstanding. You estimate its cost
You are valuing Soda City Inc. It has $143 million of debt, $73 million of cash, and 193 million shares outstanding. You estimate its cost of capital is 8.7%. You forecast that it will generate revenues of $734 million and $766 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 37%, tax rate is 21%, reinvestment rate is 54%, and terminal EV/FCFF exit multiple at the end of year 2 is 9. What is your estimate of its share value? Round to one decimal place.
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