You are valuing Soda City Inc. It has $110 million of debt, $90million of cash, and 140 million shares outstanding. You estimateits cost of capital is 12.4%. You forecast that it will generaterevenues of $700 million and $800 million over the next two years,after which it will grow at a stable rate in perpetuity. Projectedoperating profit margin is 20%, tax rate is 30%, reinvestment rateis 20%, and terminal EV/FCFF exit multiple at the end of year 2 is15. What is your estimate of its share price?
