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(Solved): CASE 1. Fazel Corporation is expected to have an EBIT of687,400next year. Depreciation, the incre ...



CASE 1. Fazel Corporation is expected to have an EBIT of€687,400next year. Depreciation, the increase in net working capital, and capital spending are expected to be€48,000,€7,000, and€42,000, respectively. All cash flow items are expected to grow at 6 percent per year for four years. After Year 5 , the FCF is expected to grow at 2.1 percent indefinitely. The company currently has€3.2million in debt and 250,000 shares outstanding. The company's WACC is 9.9 percent and the tax rate is 21 percent. 1) Estimate the company's total value. (10 points) 2) What is the value of the company's equity? (5 points) 3) What is the price per share of the company's stock? (5 points)



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