What is price per share of the company stock

Assignment Help Financial Management

Reference no: EM131558502

Ward Corp. is expected to have an EBIT of $2.900.000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $185,000, $125.000. and $135,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $23.000,000 in debt and 850,000 shares outstanding. At Year 5, you believe that the company's sales will be $17, 900,000 and the appropriate price-sales ratio is 3.2. The company's WACC is 8.9 percent and the tax rate is 40 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.) Share price $

Reference no: EM131558502

Questions Cloud

Currently sells all of its frozen dinners cash on delivery : Microbiotics currently sells all of its frozen dinners cash on delivery but believes it can increase sales by offering supermarkets 1 month of free credit.

Determine the approximate net present value of acquisition : Determine the approximate net present value of this acquisition.

Find the internal rate of return for the project : A firm is analyzing the viability of a new product. Find the internal rate of return for the project. State your answer using the form X%

Calculate the yield to first call : Calculate the yield to first call for a 10 percent, 10 year-bond that is callable five years from now. What would the inputs be on a calculator?

What is price per share of the company stock : Ward Corp. is expected to have an EBIT of $2.900.000 next year. What is the price per share of the company's stock?

What is parramore cash conversion cycle : Assume 365 days in year for your calculations. Do not round intermediate steps. What is Parramore's cash conversion cycle (CCC)?

What is effective annual rate of interest : Company X sells on a 1/25,net 60, basis. What is the effective annual rate of interest if Y pays on the due date rather than day 25?

How much additional credit could it obtain : If Lancaster decides to forgo discounts, how much additional credit could it obtain? What would be the effective cost of that credit?

Cost of equity using the dividend growth model method : Calculate the cost of equity using the dividend growth model method. Calculate the cost of equity using the SML method.

User Account

All Pages