You are valuing Soda City Inc. It has $136 million of debt, $76 million of cash, and 186 million shares outstanding. You estimate its cost of capital is 9.4%. You forecast that it will generate revenues of $729 million and $771 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 34%, tax rate is 23%, reinvestment rate is 49%, and terminal EV/FCFF exit multiple at the end of year 2 is 10. What is your estimate of its share price

Transactions that affect earnings do not necessarily affect cash. identify the effect, if any, that each of the following transactions would have upon cash and net income. the first transaction has been completed as an example. (if an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15, cash net income (a) purchased $120 of supplies for cash. –$120 $0 (b) recorded an adjustment to record use of $35 of the above supplies. (c) made sales of $1,370, all on account. (d) received $700 from customers in payment of their accounts. (e) purchased equipment for cash, $2,450. (f) recorded depreciation of building for period used, $740. click if you would like to show work for this question: open show work

Post test question number 9 for entering the job market

(a) what was the opportunity cost of non-gm food for many buyers before 2008? (b) why did they prefer the alternative? (c) what was the opportunity cost in 2008? (d) why did it change?