Determine the implied share price for value

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Reference no: EM132067110

Using the assumptions for ValueCo below, determine the implied share price for Value Co.

Assumptions

Terminal Year (year 5) EBITDA 800

Exit multiple 8.5

WACC(weighted average cost of capital) 10%

Cumulative present value of free cash flow 1500

Total debt 1000

Cash and cash equivalents 200

Fully diluted shares outstanding 100

Reference no: EM132067110

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