What is price per share of company stock

Assignment Help Financial Management
Reference no: EM131566207

Ward Corp. is expected to have an EBIT of $2,650,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $180,000, $115,000, and $130,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $20,500,000 in debt and 850,000 shares outstanding. At Year 5, you believe that the company's sales will be $17,400,000 and the appropriate price−sales ratio is 2.6. The company’s WACC is 9.5 percent and the tax rate is 35 percent.

What is the price per share of the company's stock?

Reference no: EM131566207

Questions Cloud

Advantage that arbitrators have over judges : Which of the following is an advantage that arbitrators have over judges?
Compute the number of contracts we need in the hedge : What is an optimal hedge and how do we calculate it? Compute the number of contracts we need in the hedge. How do we decide if we should implement the hedge?
What are conversion factors : What are conversion factors? Why were conversion factors developed? How do they impact on which bond is cheapest to deliver?
No interpretation of the ratios : The risk ratios for Starbucks from 2012 were calculated but there is no interpretation of the ratios over the 3 year period or areas for concern.
What is price per share of company stock : Ward Corp. is expected to have an EBIT of $2,650,000 next year. What is the price per share of the company's stock?
Two mutually exclusive projects : You have to choose between two mutually exclusive projects A and B. The cash-flows and the IRRs for the two projects,
What is the value using two stage dividend growth model : Under these assumptions, what is the value using the 2 stage dividend growth model?
According to international fisher effect : According to the international Fisher effect (IFE), the British pound should adjust to a new level of?
Briefly define sunk cost and inflation effects : How do you estimate the annual growth rate in future dividends per share? Briefly define Sunk cost and inflation effects.

Reviews

Write a Review

Financial Management Questions & Answers

  Capital structure weight of equity on market value basis

Filer Manufacturing has 11.1 million shares of common stock outstanding. The current share price is $55, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. What is Filer's capital structure weight of equity ..

  Offer the vendor for the piece of equipment

What is the maximum price would you be willing to offer the vendor for the piece of equipment?

  What rate of return would you earn if you bought this asset

What rate of return would you earn if you bought this asset?

  An investor in treasury securities expects inflation

An investor in Treasury securities expects inflation to be 2.35% in Year 1, 3.15% in Year 2, and 4.25% each year thereafter. Assume that the real risk-free rate is 1.75%, and that this rate will remain constant. Three-year Treasury securities yield 6..

  What is the minimum investment yield the company requires

What is the minimum investment yield the company requires to earn a 4% profit?

  Risk-free rate of interest

If the risk-free rate of interest (rf) is 3.5%, then you should be indifferent between receiving $1000 in one-year or. The effective annual rate for a certificate of deposit that pays 3.9% APR compounded monthly is closest to: Wesley Mouch's auto loa..

  What is the weighted average maturity of the assets

What is the weighted average maturity of the assets? What is the weighted average maturity of the liabilities?

  What is after-tax cost of capital for debt financing

Great Seneca Inc. sells $100 million worth of 22-year to maturity 13.44% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $989 for each $1,000 bond. The firm's marginal tax rate is 30%. What is the after-tax cost of capital ..

  Reason for bank panics prior to the establishment

Which of the following problems was a reason for bank panics prior to the establishment of the Federal Reserve bank:

  Applying the concept of time value of money

Raul needs to choose one alternative from the four alternatives given below. Applying the concept of time value of money,

  Foreign exchange rate involved in international trade

The major effect of the foreign exchange rate involved in international trade.

  Equivalent annual receipts equal the equivalent annual

For project A, find the value of X that makes the equivalent annual receipts equal the equivalent annual disbursement at i=8%

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