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  1. business
  2. accounting
  3. consider the following financial information about

Consider the following financial information about Vandelay Industries, a global latex manufacturer: Inputs to compute...

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Accounting

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Consider the following financial information about Vandelay Industries, a global latex manufacturer: Inputs to compute FCFF (in $ million): EBIT(1-T) 150 Capex 100 Depreciation 53 Change in NCWC - 160 MV(Debt) 2000 Cash 1000 Number of shares 76 Inputs to compute discount rates and growth rates: High growth rate of FCFF (Stage 1) 14% Stable growth rate of FCFF (Stage 2) 2% WACC 8% Using the information above in a two-stage discounted cash flow (DCF) model, we can conclude that the fair target price of Vandelay Industries is closest to: O $50 O $55 O $60 O $65

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