Corporate Finance Assignment/ Professional Essay Writers
You are valuing Soda City Inc. It has $132 million of debt, $77 million of cash, and 182 million shares outstanding. You estimate its cost of capital is 9.8%. You forecast that it will generate revenues of $726 million and $774 million over the next two years, after which it will grow at a stable rate in perpetuity. The projected operating profit margin is 33%, the tax rate is 24%, the reinvestment rate is 46%, and the terminal EV/FCFF exit multiple at the end of year 2 is 11.
What is your estimate of its share price? Round to one decimal place. Get Finance Help Today