Estimate of the current stock price-full boat manufacturing

Assignment Help Business Management
Reference no: EM132671408

Full Boat Manufacturing has projected sales of $115 million next year. Costs are expected to be $67 million and net investment is expected to be $12 million. Each of these values is expected to grow at 14 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 6 per-cent, where it is expected to remain indefinitely. There are 5.5 million shares of stock outstanding and investors require a return of 13 percent on the company's stock. The corporate tax rate is 21 percent.

a. What is your estimate of the current stock price?

b. Suppose instead that you estimate the terminal value of the company using a PE mul-tiple. The industry PE multiple is 11. What is your new estimate of the company's stock price?

Reference no: EM132671408

Questions Cloud

Calculate Erin gross profit percentage : Operating Expenses $40,000 and Net Sales $200,000. Calculate Erin's gross profit percentage and return on sales ratio
Create a uml use case diagram and use case : Create a UML Use Case Diagram and Use Case descriptions for all the use cases of the system and three UML Sequence Diagrams which describe (at least)
What is the clean price of the bond : The par value is $1,000. What is the clean price of the bond?
Do the same thing for the state of west virginia : Explain what you think is an approximate REAL unemployment figure in the United States. Explain why you chose the percentage that you chose.
Estimate of the current stock price-full boat manufacturing : Full Boat Manufacturing has projected sales of $115 million next year. Costs are expected to be $67 million and net investment is expected to be $12 million.
Describe actions you will take for international assignment : Assume you are the HR manager specializing in foreign recruitment and deployment at GNB. Please note down specific actions you will take for Mr. Marshal.
Find must avery pay : George Avery sent a letter to Jim Whitworth. Avery said stationary showed V & L was the debtor and he signed only in a representative capacity. Must Avery pay?
How much is the variable manufacturing cost per unit : How much is the variable manufacturing cost per unit, using the variable overhead estimated by the regression
Find the equivalent value at six months : A payment of $1200 is due in twelve months. Find the equivalent value at six months. The interest rate is 10% compounded semi-annually.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

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