Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Chapter 19, Problem 23PS

Company valuation Chiara Company’s management has made the projections shown in Table 19.5. Use this table as a starting point to value the company as a whole. The WACC for Chiara is 12%, and the forecast long-run growth rate after year 5 is 4%. The company, which is located in South Africa, has ZAR 5 million of debt and 865,000 shares outstanding. What is the value per share?

Chapter 19, Problem 23PS, Company valuation Chiara Companys management has made the projections shown in Table 19.5. Use this

TABLE 19.5 Cash flow projections for Chiara Corp. (ZAR thousands)

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