Question: The following table presents a four - year forecast for Kenmore Air, Inc. Estimate the fair market value of Kenmore Air's equity per share at
The following table presents a fouryear forecast for Kenmore Air, Inc. Estimate the fair market value of Kenmore Air's equity per share at the end of under the following assumptions: a EBIT in year is $ million, and then grows at percent per year forever. b To support the perpetual growth in EBIT, capital expenditures in year exceed depreciation by $ million, and this difference grows percent per year forever. c Similarly, working capital investments are $ million in and this amount grows percent per year forever.
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