What is the price per share of company stock

Assignment Help Financial Management

Reference no: EM131341401

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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price

Reference no: EM131341401

Questions Cloud

Analysis of your stock portfolio : Submit a one (1) page analysis of your stock portfolio, including why you picked your stocks, and how your rate of return and beta calculation compare to the S&P 500

Save money for down payment on the new house : You plan to buy a house in 9 years. You want to save money for a down payment on the new house. You are able to place $182 every month at the end of the month into a savings account at an annual rate of 14.82 percent, compounded monthly. How much mon..

Use the hamada equation to find unlevered beta : Hartman Motors has $11 million in assets, which were financed with $2.2 million of debt and $8.8 million in equity. Hartman's beta is currently 1.45 and its tax rate is 35%. Use the Hamada equation to find Hartman's unlevered beta, bU.

Bond was recently quoted : Bond was recently quoted at 98. Its face is $1,000 and its coupon is 5%. It matures in 15 years. Should you buy the bond if your discount rate is 6%? Why/why not? If your discount rate is 4%, should you buy the above bond? Explain.

What is the price per share of company stock : 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 ..

Intrinsic value-expected one-year holding-period return : The risk-free rate of return is 6.0%, the expected rate of return on the market portfolio is 18%, and the stock of Xyrong Corporation has a beta coefficient of 1.7. Xyrong pays out 50% of its earnings in dividends, and the latest earnings announced w..

What will the percentage change in price of bond : Bond T is a 10 percent coupon bond, has 11 years to maturity, makes semiannual payments, and has a yield-to-maturity of 7 percent. What is the bond price if the face value is $1,000? If interest rates suddenly rise by 2 percent, what will the percent..

Strategic alliance-what are the goals of each alliance : Using an Internet search engine, search for “strategic alliance” and identify three recently formed alliances. For each alliance, identify whether the companies’ other products are generally competitors or complementary products. What are the goals o..

What is a discount bond : What are the various methods for recruiting employees. What is a discount bond? Is there a build in capital gain or loss for discount bonds?

User Account

All Pages