What is the price per share of the company stock

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Point 1: Pearl Corp. is expected to have an EBIT of $3,000,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $135,000, and $175,000, respectively. All are expected to grow at 20 percent per year for four years. The company currently has $15,500,000 in debt and 1,350,000 shares outstanding. At Year 5, you believe that the company's sales will be $25,510,000 and the appropriate price-sales ratio is 2.2. The company's WACC is 8.6 percent and the tax rate is 22 percent.

Question 1: What is the price per share of the company's stock?

Reference no: EM132528576

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