What is the price per share of the company stock

Assignment Help Financial Management
Reference no: EM131923638

Ward Corp. is expected to have an EBIT of $2,050,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $168,000, $91,000, and $118,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $14,500,000 in debt and 830,000 shares outstanding. At Year 5, you believe that the company's sales will be $16,200,000 and the appropriate price–sales ratio is 2.3. The company’s WACC is 8.3 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 $

Please show all work.

Reference no: EM131923638

Questions Cloud

Find holding-period return for one-year investment period : Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 6.1% by the end of the year.
What was net capital spending : Bowyer Driving School’s 2014 balance sheet showed net fixed assets of $4.9 million, What was net capital spending for 2015?
What is the after-tax-risk adjusted discount rate : What is the after-tax, risk adjusted discount rate? What is the nominal after-tax terminal value?
New machine for production of latex : Vandalay Industries is considering the purchase of a new machine for the production of latex.
What is the price per share of the company stock : Ward Corp. is expected to have an EBIT of $2,050,000 next year. What is the price per share of the company's stock?
What is the market value of bond : A 10-year bond pays annual interest of 8% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond?
Air expansion plans with bond issue : complete the requirements of the Mini-case “Financing S & S Air’s Expansion Plans with a Bond Issue”
How much is balloon payment : Ann wants to buy an office building which costs $2,000,000. If Ann pays the required monthly payment for 5 years, how much is her balloon payment?
Shares of common stock outstanding-company wacc : Filer Manufacturing has 10 million shares of common stock outstanding. What is the company's WACC?

Reviews

Write a Review

Financial Management Questions & Answers

  Npv profiles to visually evaluate competing projects

Cooper Electronics uses NPV profiles to visually evaluate competing projects.

  Accounts have the same quoted annual rate of interest

You are planning to deposit $1,000 in a savings account. Account A compounds semi annually while account B compounds monthly. If both accounts have the same quoted annual rate of interest,

  Bushels of corn for your production operations

You need 70,000 bushels of corn for your production operations next month. The futures contracts on corn are based on 5,000 bushels and are currently quoted at 514 cents per bushel for delivery next month. If you want to hedge your cost, how many con..

  Daily news most apt to react to this announcement

How is the stock price of the Daily News most apt to react to this announcement?

  What is the yield to maturity of bonds

What is the yield to maturity of the? bonds? The yield to maturity of the bonds is what percent?

  When you invest the incoming funds in long-term bonds

you will earn the current interest rate of 8% when you invest the incoming funds in long-term bonds.

  What are monthly payments for the four traditional mortgage

Mark and Alicia Story, recently married, have decided that they want to buy a $600,000 house. They are planning to give 20% down payment and finance the rest with a mortgage. Mark and Alicia are now ready to meet with Chris Vaughan, the loan officer ..

  Dso and accounts receivable

DSO AND ACCOUNTS RECEIVABLE Ingraham Inc. currently has $810,000 in accounts receivable, and its days sales outstanding (DSO) is 60 days. It wants to reduce its DSO to 30 days by pressuring more of its customers to pay their bills on time.

  Cause problems in free market exchange

Given what we are seeing with regards to the healthcare labor market the distribution of assets to under-served populations, what sort of policy interventions is needed? Or, do regulations and policy changes just cause problems in a free market excha..

  What is the cross-rate of turkish lira to euros

What is the cross-rate of Turkish Lira to euros?

  What would be the nominal and effective cost of such credit

If Adams decides to forgo discounts, how much additional credit could it obtain? What would be the nominal and effective cost of such a credit?

  What is the risk-free rate

The common stock of ABC Homes has an expected return of 13.6% and a beta of 0.7. The expected return on the market portfolio is 16%. What is the risk-free rate?

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