Question: Please do all parts Intro In the most recent year (2019), UPipe had an EBIT of $220 million. Depreciation was $44 million, increase in net

 Please do all parts Intro In the most recent year (2019),UPipe had an EBIT of $220 million. Depreciation was $44 million, increase

Please do all parts

Intro In the most recent year (2019), UPipe had an EBIT of $220 million. Depreciation was $44 million, increase in net operating working capital was $22 million and capital expenditure was $55 million. Over the next 4 years, EBIT is expected to grow by 20% per year, depreciation by 15% per year, capital expenditure by 25% per year and change in net operating working capital by 15% per year. The annual free cash flow is expected to grow by 5% per year after 2023. The weighted average cost of capital is 7% and the average tax rate is 34%. The firm has $610 million of debt and 10 million shares outstanding. Attempt 2/10 for 9.8 pts. IB Part 1 What was the free cash flow in 2019 (in $ million)? Correct A B 1 Year 2 EBIT 3 Taxes 4 Depr. 5 EBIT(1-1)+Depr. 189.2 |6| CAPEX 7 ANOWC 8 FCF 112.2 Part 2 Attempt 3/10 for 9.6 pts. What is the expected free cash flow in 2023 (in $ milion)? 0+ decima Submit Part 3 Attempt 3/10 for 9.6 pts. What is the horizon value in 2023 (in $ million)? 0+ decima Submit Part 4 Attempt 1/10 for 10 pts. What is the firm value today, at the beginning of 2020 (in $ million)? 0+ decima Submit Attempt 1/10 for 10 pts. Part 5 What is the stock price today? 0+ decima Submit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!