Question: Please show how to calculate this using excel formulas? According to the value-based management model, what is the stock price per share given the following

 Please show how to calculate this using excel formulas? According to

Please show how to calculate this using excel formulas?

According to the value-based management model, what is the stock price per share given the following data? Year 1: Revenue: 750 Fixed Costs: 50 Variable costs: 200 Additional investments in NWC: 3 Additional investments in operating long-term assets: 80 Depreciation: 75 Corporate tax rate: 0.40 WACC COMP: 0.15 (don't worry about WACC for operating assets) Growth rate per year: From year 1 through year 5:0.10 After year 5: 0.05 Market value: Non-operating short-term assets: 50 Non-operating long-term assets: 100 Market value: Short-term debt: 50 Long-term debt: 700 Common Stock: Market price per share: 15 Number of shares: 100 Select one: a. $22.72 b. $25.20 c. $28.00 d. $31.32 The correct answer is: $22.72

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