User Account

All Pages

Estimate for bullseye stock price-bullseye corp

Assignment Help Finance Basics
Reference no: EM132594810

Bullseye Corp. does not pay dividends. As an analyst for the company, you are trying to assess the stock price and realize you cannot use the dividend discount model because of the lack of dividend payment. For the coming year, you estimate the following based upon past performance and current conditions:

EBIT of $500,000

Depreciation of $250,000

Tax rate of 21%

Change in NWC of $100,000

Capital Expenditures of $350,000

WACC=10.9%

Expected growth in free cash flows of: o Year 2 and Year 3: 10% o Year 4 and beyond: 5%

The company also has the following:

Market Value of Debt of $3,000,000

Excess Cash of $250,000

100,000 shares outstanding

What is the your estimate for Bullseye's stock price?

Reference no: EM132594810

Questions Cloud

What would they need to prove in court to be successful : How do you think the Court would treat the non compliance of Lang Builders with the term of their contract with RH to complete the renovation by 31 December
What is the amount of amortization to pension expense : The average remaining service period for the employees expected to receive benefits is 10 years. What is the amount of amortization to pension expense
Make schedule showing the allocation of total cost : Make schedule showing the allocation of total cost among the asset acquired, Assuming that P Company paid birr 500,000 for all assets acquired
Does the use of data promote good business practice : Does the use of data promote good business practice or bigotry? To what extent is it proper to force citizens to participate in a census, knowing that more.
Estimate for bullseye stock price-bullseye corp : Bullseye Corp. does not pay dividends. As an analyst for the company, you are trying to assess the stock price and realize you cannot use the dividend discount
Construct the company contribution format income statement : In July, Meers Corporation sold 3,700 units of its only product. Construct the company's contribution format income statement for July
Describe your methodology in detail on what you did : In addition you should described your methodology in detail on what you did and end with your analysis and results and conclusion. Your research paper should.
What is the most you would be willing to pay for the stock : Based upon the risk of the company, the required rate of return is 18%. What is the most you would be willing to pay for the stock today?
Research one trend of the future development : Research and evaluate a range of resources, use critical and creative reasoning to develop a well-substantiated point of view

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd