The following information is available for a company, Sunshine Ltd. Cost of equity = 12% Weighted...
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The following information is available for a company, Sunshine Ltd. Cost of equity = 12% Weighted average cost of capital (WACC) = 10% Market Capitalisation at the beginning of FY2023= $ 120m Number of shares outstanding = 12 m Net financial obligation (NFO) at the beginning of FY2023 = $ 18m It is estimated that Sunshine Ltd will generate free cash flows (FCF) of $ 6.6m in FY 2023 and $ 7.26m in FY2024 respectively. After FY 2024, free cash flows are expected to grow at a constant rate forever. Round-off your answers up to one place of decimal (For example, 1.56 should be rounded off as 1.6;1.55 should be rounded off as 1.6; 1.54 should be rounded off as 1.5; 10% should be written as 10). Do not use dollar sign ($), comma (,), or percentage (%) in your answers. What is the implied terminal growth rate for Sunshine Ltd? The following information is available for a company, Sunshine Ltd. Cost of equity = 12% Weighted average cost of capital (WACC) = 10% Market Capitalisation at the beginning of FY2023= $ 120m Number of shares outstanding = 12 m Net financial obligation (NFO) at the beginning of FY2023 = $ 18m It is estimated that Sunshine Ltd will generate free cash flows (FCF) of $ 6.6m in FY 2023 and $ 7.26m in FY2024 respectively. After FY 2024, free cash flows are expected to grow at a constant rate forever. Round-off your answers up to one place of decimal (For example, 1.56 should be rounded off as 1.6;1.55 should be rounded off as 1.6; 1.54 should be rounded off as 1.5; 10% should be written as 10). Do not use dollar sign ($), comma (,), or percentage (%) in your answers. What is the implied terminal growth rate for Sunshine Ltd?
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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