Question: 1 . Booth Pharma Inc. ( BPI ) manufactures generic drugs. BPI had sales of ( $ 2 0 ) billion in

1. Booth Pharma Inc. (BPI) manufactures generic drugs. BPI had sales of \(\$ 20\) billion in the most recent fiscal year (FY2024). Analysts expect BPI's sales to grow at the following rate The long-run growth rate of the generic drug industry is \(2\%\). Based on BPI's past profitability and investment needs, analysts expect EBIT to be \(10\%\) of sales, increases in net working capital requirements to be \(10\%\) of any increase in sales, and capital expenditures to equal depreciation expenses. The corporate tax rate is \(21\%\). The firm has adopted the following capital structure (as on end of FY2024)- Debt to Assets ratio =20\%- Debt \(=\$ 6\) billion (perpetual)- Cash \(=\$ 1\) billion - Interest rate on debt \(=9\%\)(constant)- Unlevered Cost of Equity \(=15\%\)- Number of shares \(=100\) million What would have been your estimate of the value (per share) of BPI's stock in early 2025? Use (a) APV method (b) WACC method (c) FTE method .(10 points for each method)
1 . Booth Pharma Inc. ( BPI ) manufactures

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