Business, 21.04.2021 01:40, cluis811

You are considering the acquisition of XYZ Enterprises. You have made the following projections for XYZ for years 1-5 ($ millions): Year 1 Year 2 Year 3 Year 4 Year 5 EBIT $ 20 $ 22 $ 25 $ 26 $ 30 Depreciation 5 5 6 7 8 Capital Expenditures 10 10 15 15 15 Investment in Working Capital 3 4 4 3 4 Assume a tax rate of 34%, a WACC of 13%, 2 million shares outstanding, $30 million debt value, and a growth rate of 5% after year 5. What is the estimated value per share to the nearest penny of XYZ using the perpetual growth method for calculating terminal value

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You are considering the acquisition of XYZ Enterprises. You have made the following projections for...