# Suppose we know the following information 1. Revenue will grow by 4% annually on a go forward basis 2. Cost

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## Question:

Suppose we know the following information

1. Revenue will grow by 4% annually on a go forward basis

2. Cost of goods Sold will be 43% of Revenue

3. SG&A will be 12% of Revenue

4. Free Cash to the Firm is forecast to equal 5% of Revenue in perpetuity

5. Revenue for the current year is forecast to equal $2,500,000.

6. The Company's WACC is 8%.

7. The Company has debt of $1,000,000

8. The Company has Cash of $500,000.

9. The Company has 100,000 shares outstanding.

What is the value/share of the Company's shares assuming the value is calculated as the present value of future cash flows?

**Related Book For**

## Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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