Calculate the current price per share for cali corporation

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Reference no: EM13946397

You have been given the following projections for Cali Corporation for the coming year.

Sales = 10,000 units

Sales price per unit = $10

Variable cost per unit = $5

Fixed costs = $10,000

Bonds outstanding = $15,000

rd on outstanding bonds = 8%

Tax rate = 40%

Shares of common stock outstanding = 10,000 shares

Beta = 1.4

rRF = 5%

rM = 9%

Dividend payout ratio = 60%
Growth rate = 8%

Calculate the current price per share for Cali Corporation.

a. $35.22
b. $46.27
c. $48.55
d. $53.72
e. $59.76

Reference no: EM13946397

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