What is cwi current price per share

Assignment Help Finance Basics
Reference no: EM132745141

Cool-Waves Inc. (CWI) is a newly incorporated firm that produces trendy and innovative clothing for young adults. The company is exhibiting rapid growth. It has current free cash flows of $25 million which are expected to increase at the rate of 18% for the next 5 years. However, after this period of high growth, as the novelty of its products wears off, the growth rate of CWI free cash flows will decline by 2% per year for the next 4 years and thereafter remain constant for the foreseeable future. CWI has a weighted average cost of capital of 14%. The company currently has $15 million of debt selling at 10% below par, and 200 million outstanding shares. It also has $ 120 million in cash. What is CWI's current price per share? (Hint:Take period 4 as the new time 0 for the second timeline and period 9 as the new time 0 for the third timeline.)

Reference no: EM132745141

Questions Cloud

What is the face value of bond : The bond has monthly coupon payments of $12 and is currently selling at $3,617. 062 What is the face value of this bond?
What is coupon rate coupon payments : What is its coupon rate if it makes coupon payments every 6 months?
How much cash did levy company raise : Could you please explain how to question / how to do it if the question was "How much is premium bonds". On january 1, 2020, levy company issues 300 x 5% bonds.
Equipment upon termination of the lease : Exercise 21-4 Swifty Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Nash Company. The term of the noncancelable
What is cwi current price per share : What is CWI's current price per share? (Hint:Take period 4 as the new time 0 for the second timeline and period 9 as the new time 0 for the third timeline.)
Prepare the necessary journal entries : Prepare the necessary journal entries for 2016 and 2017 using point of delivery revenue recognition. Ignore interest charges. (If no entry is required for a).
What is abc company change in profits : Variable marketing/distribution costs would not be incurred on the special order. What is ABC Company's change in profits using the contribution margin format
How much interest do you pay in the first? year : You have just negotiated a home mortgage with a principal of ?$450,000. The? bank's quoted rate is 7.9?%. You chose a 25?-year amortization and you decide.
Calculate the economic ordering quantity : XYZ Company's most popular products, the FIFA endorsed football. Calculate the economic ordering quantity (EOQ) for 2019 with respect to the footballs.

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