Ward Corp. is expected to have an EBIT of $2,700,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $181,000, $117,000, and $131,000,
respectively. All are expected to grow at 18 percent per year for
four years. The company currently has $21,000,000 in debt and
810,000 shares outstanding. At Year 5, you believe that the
company's sales will be $17,500,000 and the appropriate price–sales
ratio is 2.7. The company’s WACC is 9.4 percent and the tax rate is
40 percent.
What is the price per share of the company's stock? (Do not
round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
Share price
$
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Ward Corp. is expected to have an EBIT of $2,700,000 next year. Depreciation, the increase in...
Ward Corp. is expected to have an EBIT of $2,650,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $180,000, $115,000, and $130,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $20,500,000 in debt and 850,000 shares outstanding. At Year 5, you believe that the company's sales will be $17,400,000 and the appropriate price–sales ratio is 2.6. The company’s WACC is 9.5 percent...
Pearl Corp. is expected to have an EBIT of $2,700,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $120,000, and $160,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $14,000,000 in debt and 1,200,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company’s WACC is 9.3 percent and the...
Pearl Corp. is expected to have an EBIT of $3,600,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $165,000, and $205,000, respectively. All are expected to grow at 20 percent per year for four years. The company currently has $18,500,000 in debt and 1,650,000 shares outstanding. At Year 5, you believe that the company's sales will be $30,610,000 and the appropriate price-sales ratio is 2.8. The company’s WACC is 9.3 percent...
Dewey Corp. is expected to have an EBIT of $2,900,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $225,000, $130,000, and $230,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $17,500,000 in debt and 840,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.9 percent indefinitely. The company’s WACC is 9.3 percent and the...
Pearl Corp. is expected to have an EBIT of $3,400,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $155,000, and $195,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $17,500,000 in debt and 1,350,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.5 percent indefinitely. The company’s WACC is 9.1 percent and the...
Pearl Corp. is expected to have an EBIT of $3,700,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $170,000, and $210,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $19,000,000 in debt and 1,150,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.5 percent indefinitely. The company's WACC is 9.4 percent and the...
Dewey Corp. is expected to have an EBIT of $2,600,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $195,000, $100,000, and $200,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $14,500,000 in debt and 810,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.3 percent indefinitely. The company’s WACC is 8.6 percent and the...
Pearl Corp. is expected to have an EBIT of $2,900,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $130,000, and $170,000, respectively. All are expected to grow at 19 percent per year for four years. The company currently has $15,000,000 in debt and 1,300,000 shares outstanding. At Year 5, you believe that the company's sales will be $23,840,000 and the appropriate price-sales ratio is 2.1. The company’s WACC is 8.5 percent...
Dewey Corp. is expected to have an EBIT of $2,850,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $220,000, $125,000, and $225,000, respectively. All are expected to grow at 16 percent per year for four years. The company currently has $17,000,000 in debt and 835,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.8 percent indefinitely. The company's WACC is 9.2 percent and the...
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