Estimates of Year 1 (next year) financial performance (Unit: $ million)
Revenue
900
Costs of goods sold
100
Selling, general and administrative expenses including R&D
200
Depreciation
50
Property and equipment
1100
Working capital
150
Current (Year 0) financial data (Unit: $ million)
950
110
Other information for valuation
Operating tax rate
21%
The estimated growth rate of cash flows
(Assume that this growth rate is constant)
6%
This company has no debt.
Assume that 14% is the required return on this companys assets.
Answer: $_____________ million
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