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You are valuing Soda City Inc. It has $146 million of debt, $71 million of cash, and 196 million shares outstanding. You estimate its cost
You are valuing Soda City Inc. It has $146 million of debt, $71 million of cash, and 196 million shares outstanding. You estimate its cost of capital is 8.4%. You forecast that it will generate revenues of $737 million and $763 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 39%, tax rate is 21%, reinvestment rate is 57%, 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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