You have been assigned to estimate a fair price of the stock of the car company

You have been given the following information for EXXi for the most recent year:

- EUR 23 million in after-tax operating income

- EUR 12 million in capital expenditures

- EUR 6 million in depreciation

- EUR 5 million increase in non-cash working capital

You spend the first couple of days try to figure out what the future looks like for EXXi and came up with the following estimations:

For the prognostic period (the first 3 years) you estimate that:

- The after-tax operating income, capital expenditures, and depreciation all are expected to grow 12% a year for the next 3 years. The change in the non-cash working capital will increase by 120 % per year for each year during the 3 years.

- The cost of capital is 11%

For the remaining years (terminal value) you estimate that:

- The growth rate will drop to 3% but you anticipate that the return on capital will stay stable at the same level that the firm maintained during the high growth period.

- Also the cost of capital is anticipated to drop to 10%

Further, the firm has EUR 100 million in debt, EUR 20 million as a cash balance and 10 million shares outstanding. The corporate tax rate is 30%.