Reference no: EM132052696
Ward Corp. is expected to have an EBIT of $1,950,000 next year.
Depreciation, the increase in net working capital, and capital spending are expected to be $166,000, $87,000, and $116,000, respectively.
All are expected to grow at 15 percent per year for four years. The company currently has $13,500,000 in debt and 810,000 shares outstanding.
At Year 5, you believe that the company's sales will be $16,000,000 and the appropriate price-sales ratio is 2.1. The company's WACC is 8.1 percent and the tax rate is 35 percent. What is the price per share of the company's stock?
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