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10. You are valuing Soda City Inc. It has $150 million of debt, $70 million of cash,...

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Advance Math

10.

You are valuing Soda City Inc. It has $150 million of debt, $70million of cash, and 200 million shares outstanding. You estimateits cost of capital is 8.0%. You forecast that it will generaterevenues of $740 million and $760 million over the next two years,after which it will grow at a stable rate in perpetuity. Projectedoperating profit margin is 40%, tax rate is 20%, reinvestment rateis 60%, and terminal EV/FCFF exit multiple at the end of year 2 is8. What is your estimate of its share price? Round to one decimalplace.

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