Price per share of the company stock-pearl corp

Assignment Help Finance Basics
Reference no: EM132481467

Pearl Corp. is expected to have an EBIT of $3,100,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $140,000, and $180,000, respectively. All are expected to grow at 15 percent per year for four years. The company currently has $16,000,000 in debt and 1,050,000 shares outstanding. At Year 5, you believe that the company's sales will be $22,230,000 and the appropriate price-sales ratio is 2.3. The company's WACC is 8.7 percent and the tax rate is 23 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.)

Reference no: EM132481467

Questions Cloud

What is the market value of firm u : Two firms U and L differ only in their capital structure. Firm U is unlevered with $1 billion in equity. Firm L has $500 million in equity and $500 million in p
What the current ratio would become : If a company has a current ratio of 2, and then pays half of its current liabilities from current assets, the current ratio would become
Compute the possible apartment building value today : The investor wants to earn a 13% interest rate on this investment. Compute the possible apartment building value today. [constant growth model CH8].
Calculate the net income reported by abc company : Calculate the net income reported by ABC Company for 2021 after the appropriate adjusting entries have been recorded and posted.
Price per share of the company stock-pearl corp : 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.)
What is the coupon rate-gugenheim : Gugenheim offers 12-year coupon bonds with semiannual payments. The yield to maturity is 6.23 percent, and the bonds sell at 101 percent of par.
Determine the full product costs and selling prices : Determine the full product costs and selling prices of one pound of Mona Loa coffee and one pound of Malaysian coffee. Determine the company's predetermined
What did the debt-solvency ratios : What did the debt/solvency ratios show in terms of current and noncurrent liabilities?
Has it become richer or poorer-by how much : But thanks to synergies with this new subsidiary, it is able to improve its earnings by €75m. Has it become richer or poorer? By how much?

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!

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