You MUST use the this Excel file to answer this question. Fa…

Written by Anonymous on March 17, 2026 in Uncategorized with no comments.

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Yоu MUST use the this Excel file tо аnswer this questiоn. Fаilure to use the spreаdsheet provided will lead to an automatic 5 point deduction on this question   It is December 2024. A company called Midterm Glory Inc. generated $4.5 billion in revenue in 2024. Revenue is expected to grow at 8% for five years, after which the firm will enter a stable-growth phase. The firm’s stock is currently trading at $25 per share. In the stable-growth phase (beginning year 6) free cash flow will grow at 3% forever. Use the WACC method to estimate the firm’s share price given the  following assumptions for the next five years.  These data are also provided in the attached Excel document 5-year revenue growth forecast 8% Operating expense (% of sales)* 68% Tax 20% WACC 8% Debt ($ millions) 1500 Interest rate on debt 4% Capex (as a % of sales) 5% Depreciation (as % of sales) 3% Working capital (as % of sales) 5% Shares outstanding (millions) 850 Cash balance 0 *Including depreciation expense  

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