Lunent Data Analytics, a small start-up data management firm…
Lunent Data Analytics, a small start-up data management firm, is the target of an acquisition. Lunent is expected to have an EBIT of $[EBIT1x],000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $[Deprec1x],000, $[dNWC1x],000, and $[NCS1x],000, respectively, then. All are expected to grow at [gx] percent per year the following four years (i.e., Years 1 through 5). The company currently has $[Dx],000,000 in debt and [SHRx],000 shares outstanding. At Year 5, you believe that the company’s sales will be $[Sale5x],000,000 and the appropriate price-sales ratio is [PSratio]. The company’s WACC is [WACCx] percent and the tax rate is 25 percent. What value is the value of one share of Lunent’s stock? (Enter your answer to rounded to the nearest $0.01 and without the $)
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