Question: I need answer for this question urgent please. Question 2 20 / 20 pts In 2017, BMC Software generated $465M of operating income (earnings before

 I need answer for this question urgent please. Question 2 20/ 20 pts In 2017, BMC Software generated $465M of operating income(earnings before interest and taxes) and $295M of net income from $2,200M

I need answer for this question urgent please.

Question 2 20 / 20 pts In 2017, BMC Software generated $465M of operating income (earnings before interest and taxes) and $295M of net income from $2,200M of sales. Over the next two years (2018 and 2019), the firm is projecting 10% growth in operating income and 5% growth in depreciation expense. Beginning in 2020, BMC estimates that free cash flows will grow 2%. Assume the firm's effective tax rate is 30%, weighted average cost of capital is 9%, and number of shares outstanding is 146M. Depreciation expense for 2017 was $105M while capital expenditures were $55M. Capital expenditures are expected to remain constant over the next 5 years. BMC expects working capital needs to increase by $20M per year. Lastly, the firm has $250M in cash and cash equilavents and $750M of interest bearing debt. What is the the terminal value today? TV2019 = FCF2020/(WACC - g) $6,333.00 $5,810.09 0 $4,925.66 0 $4,518.96 In 2017, BMC Software generated $465M of operating income (earnings before interest and taxes) and $295M of net income from $2,200M of sales. Over the next two years (2018 and 2019), the firm is projecting 10% growth in operating income and 5% growth in depreciation expense. Beginning in 2020, BMC estimates that free cash flows will grow 2%. Assume the firm's effective tax rate is 30%, weighted average cost of capital is 9%, and number of shares outstanding is 146M. Depreciation expense for 2017 was $105M while capital expenditures were $55M. Capital expenditures are expected to remain constant over the next 5 years. BMC expects working capital needs to increase by $20M per year. Lastly, the firm has $250M in cash and cash equilavents and $750M of interest bearing debt. Using the DCF approach, which of the following is the best estimate of BMC Software's equity per share in 2018? Note: use the FCF for 2019 and the terminal value for 2019 (question 2) 39.10 per share 42.53 per share 36.37 per share 29.33 per share

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