goofy44
goofy44
17.03.2021 • 
Business

The following table presents forecasted financial and other information for Havasham Industries: 2015 2016 2017 Projected EBIT $ 317 $ 339 $ 363 Earnings after tax 197 210 225 Free cash flow 135 144 155 Havasham's WACC 8.2% Expected growth rate in FCFs after 2017 4.0% Warranted MV firm/FCF in 2017 19.4 Warranted P/E in 2017 18.7 What is an appropriate estimate of Havasham’s terminal value as of the end of 2017 using a warranted price-to-earnings multiple as your estimate?

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