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You want to estimate todays fair price of La Tienda Inc. (assume today is January 1 , 2021). The company will experience a growth period
You want to estimate todays fair price of La Tienda Inc. (assume today is January 1 , 2021). The company will experience a growth period of 4 years (2021 to 2024) as displayed in selected financial information below. After the growth period the company will have a stable growth rate equal to the risk free rate of \2. Additional assumptions are: Capex is are \30 of the EBIT. Tax rate is \35 WACC is \6 Short term debt is equal to zero The number of shares outstanding is 100,000. Assume Redundant Assets \\( = \\) zero Assume today is January 1,2021 Answer the following questions by selecting the 4 best possible answers, that is the answers better approximate to your solutions. 1) What are the Operative Cash Flows for 2021? select A, B or C 2) What are the Changes in Networking capital for 2022? select E, F, or G 3) What is the Present Value of the Terminal Value (today = January 1 2021)? select H, I, or J 4) What is the fair price of the Stock today? select K, L or M
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