subject
Business, 18.03.2021 01:40 Dragonskeld

You are valuing Soda City Inc. It has $125 million of debt, $80 million of cash, and 175 million shares outstanding. You estimate its cost of capital is 10.5%. You forecast that it will generate revenues of $720 million and $780 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 30%, tax rate is 25%, reinvestment rate is 40%, and terminal EV/FCFF exit multiple at the end of year 2 is 12. What is your estimate of its share price

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 05:00
What is a sort of auction for stocks in which traders verbally submit their offers?
Answers: 3
question
Business, 22.06.2019 10:30
When sending a claim to an insurance company for services provided by the physician, why are both icd-10 and cpt codes required to be submitted? how are these codes dependent upon each other? what would be the result of not submitting both codes on a medical claim to an insurance company?
Answers: 2
question
Business, 22.06.2019 11:30
17.     chef a says that garnish should be added to a soup right before serving. chef b says that garnish should be cooked with the other ingredients in a soup. which chef is correct? a. chef a is correct. b. both chefs are correct. c. chef b is correct. d. neither chef is correct. student c   incorrect which is correct answer?
Answers: 2
question
Business, 22.06.2019 21:30
The year-end financial statements of calloway company contained the following elements and corresponding amounts: assets = $34,000; liabilities = ? ; common stock = $6,400; revenue = $13,800; dividends = $1,450; beginning retained earnings = $4,450; ending retained earnings = $8,400. based on this information, the amount of expenses on calloway's income statement was
Answers: 1
You know the right answer?
You are valuing Soda City Inc. It has $125 million of debt, $80 million of cash, and 175 million sha...
Questions
question
Mathematics, 17.02.2021 03:00
question
English, 17.02.2021 03:00
question
Mathematics, 17.02.2021 03:00
question
Chemistry, 17.02.2021 03:00
question
Mathematics, 17.02.2021 03:00