Question: You are trying to value a new AI startup. This startup will be financed with 1 0 % debt and 9 0 % equity and
You are trying to value a new AI startup. This startup will be financed with debt and equity and is expected to maintain this capital structure. The unlevered cost of capital in the industry is The cost of debt for this company is You estimate that the FCF for the first years will be $ M t $t $ M t and $ M t Additionally, you estimate that the EBIT in year will be $ M The tax rate for this company is
Q What is the value of the company today if you believe the growth rate of FCF after year is
Q What is the value of the company today if you believe the EVEBIT exit multiple in year will be
Q Given your answer to Q if the company had million shares, what should the price of each share be
Input the Terminal Value in the answer prompt.
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