Valuation of DEF Corp

Here is some data about DEF Corp (in 000s):

Sales for last year $560,000. Sales are predicted to grow at 8% for years 1-5 and 3% after that.

The following are expressed as a % of sales:

COGS % of Sales

42%

Gr Assets % of Sales

26%

Inv. % of Sales

16%

Assume Inventory is the only working capital account

Depreciation is 12% of Gross Fixed Assets

The company's tax rate is 22%

DEF Corp. has a WACC of 11%

The market value of bonds is $950,000.

They have 40,000 shares of common stock outstanding.

Compute the value per share of DEF Corp.

Check figures: FCF Year 1 = $258,947

Terminal value (in Year 5$) = $4,735,782