What is the price per share of the company stock

Assignment Help Financial Management
Reference no: EM131583547

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. After Year 5, the adjusted cash flow from assets is expected to grow at 2.5 percent indefinitely. 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?

Reference no: EM131583547

Questions Cloud

Yield to maturity-what is their nominal yield to call : A firm's bonds have a maturity of 14 years with a $1,000 face value, What is their nominal yield to maturity? What is their nominal yield to call?
Bond valuation-yield to maturity and future price : Callaghan Motors' bonds have 20 years remaining to maturity. What is its yield to maturity (YTM)?
Find the equivalent simple interest rate : Find the amount that Hughie sold the note for and the simple interest rate Hughie earned on this deal. Find the equivalent simple interest rate.
Common stock value long dash-constant growth : Use the? constant-growth model? (Gordon model) to find the value of the firm. The value of the? firm's stock.
What is the price per share of the company stock : Ward Corp. is expected to have an EBIT of $1,950,000 next year. What is the price per share of the company's stock?
What was caterpillar book debt-to-value ratio : What was Caterpillar’s book debt-to-value ratio? Which measure should you use to calculate the company’s cost of capital?
At what price will the stock reach an equilibrium : A share of stock with a beta of .85 now sells for $58. At what price will the stock reach an “equilibrium” at which it is perceived as fairly priced today?
What is the expected forward rate : Short term interest rates are 3 percent in Japan and 5 percent in the United States. What is the expected forward rate?
Considering a new three-year expansion project : H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,220,000.

Reviews

Write a Review

Financial Management Questions & Answers

  A general partnership must pay federal income tax

A minor may become a general partner. A general partnership must pay Federal income tax.

  Risk-free securities yield

Assume that interest rate parity holds. In both the spot market and the 90-day forward market 1 Japanese yen equals 0.0086 dollar. In Japan, 90-day risk-free securities yield 4.9%. What is the yield on 90-day risk-free securities in the United States..

  Estimate of the corporate bonds default risk premium

Assume you make the following investment: a $10,000 investment in a 10year T-bond that has a yield of 10.5% and A $20,000 investment in a 10 year corporate bond with an Baa rating and a yield of 13.7%. Based on this information, what is your estimate..

  Two stocks in the same industry producing similar products

Imagine that you are following two stocks in the same industry producing similar products.

  What are the three main types of political risk covered

What are the three main types of political risk covered by political risk insurance?

  What is aftertax salvage value of the equipment

What level of pretax cost savings do we require for this project to be profitable? What is the aftertax salvage value of the equipment? (

  What is this gift worth at the present time

Your rich uncle has just given you a high school graduation present of $1,200,000. The present, however, is in the form of a 25-year bond with an annual interest rate of 2.2% compounded annually. The bond says that it will be worth $1,200,000 in 25 y..

  Provide the appropriate data

The school you would like to attend costs $100,000. Provide the appropriate data

  Design and develop a spreadsheet to capture budgeted

BSBFIM501 Manage Budget and Financial Plans Assignment. Design and develop a spreadsheet to capture budgeted and actual figures to produce a variance report. Access actual budget figures from relevant managers and accounting systems (assessor)

  How many bonds they need to issue

X Corporation’s outstanding bonds have a $1,000 par value, a 6% semi annual coupon, 3 years to maturity and a 8% YTM. What is the bond’s price? If X Corporation needs to raise 2 million, how many bonds they need to issue?

  What is the purpose of the introduction of a paper

List in order the major sections that all research papers must have.- What is the purpose of the introduction of a paper?

  Calculate present value of continuing value of sunshine

Sunshine Company operates retail sunglass kiosks in shopping malls. Below is information related to the company. Required rate of return on equity (RE) is 8.5%. Calculate the present value of continuing value of Sunshine at the start of 2014 using th..

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