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You are working at an investment capital firm that specializes in finding start-ups to improve, expand and introduce publicly (list for first time on a

You are working at an investment capital firm that specializes in finding start-ups to improve, expand and introduce publicly (list for first time on a stock exchange). Currently you are to analyse the local firm ABC company that provides subscriptions on speedy and professional help at hand for people who let out there mountain cabins in Sweden. while living far away. With a new airport being built nearby, you expect a strongly rising market or the companys services. ABC is financed by debt (50%) and equity (50%), with 1 million shares outstanding. ABC has currently 4 million in cash. Using ABCs most recent annual report, you estimate next year figures (and actually all coming years figures too) to be: Sales 120 Raw material, inputs and labor costs 17 Depreciation 1 Capital expenditures 20 The marginal corporate tax rate is 20%. The WACC is 10%. (Disregard interest payments, net debt and the tax shield, for simplicity.) Compute the after-tax earnings (net income), the free cash flow, the total enterprise value and the stock price.

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