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Business, 13.03.2021 06:00 quee31

You are valuing Soda City Inc. It has $136 million of debt, $76 million of cash, and 186 million shares outstanding. You estimate its cost of capital is 9.4%. You forecast that it will generate revenues of $729 million and $771 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 34%, tax rate is 23%, reinvestment rate is 49%, and terminal EV/FCFF exit multiple at the end of year 2 is 10. What is your estimate of its share price

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You are valuing Soda City Inc. It has $136 million of debt, $76 million of cash, and 186 million sha...

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