What is the price per share of the company stock

Assignment Help Finance Basics
Reference no: EM132543826

You have looked at the current financial statements for Kent Homes Co. In the year that just ended, the company had an EBIT of $2.95 million. Depreciation, the increase in net working capital, and capital spending were $235,000, $105,000, and $475,000, respectively. You expect that over the next five years, EBIT will grow at 15% per year, depreciation and capital spending will grow at 20% per year, and NWC will grow at 10% per year. The company has $19.5 million in debt and 400,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5% indefinitely. The company's WACC is 9.25%, and the tax rate is 35%.

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

Reference no: EM132543826

Questions Cloud

Workplace testing and role in hiring process : Define employment-at-will and explain whether or not you agree with this principle. discuss your thoughts on workplace testing and its role in hiring process.
Geometric average monthly return : A stock delivered the following returns over the last 4 months. What was the geometric average monthly return? Please enter using decimal
Towards the down payment on a house : Joshua Lipscombe plans to save $2,599 every year for the next eight years, starting today. At the end of eight years
List and describe the three determinants for long-term care : List and describe the three determinants for long-term care. Visit the Medicare Website. Briefly (in 4-5 paragraphs), describe the program as it stands today.
What is the price per share of the company stock : You have looked at the current financial statements for Kent Homes Co. In the year that just ended, the company had an EBIT of $2.95 million.
Review problem based on the leadership : Pick a time in the recent past where you were a leader in a healthcare context. Reflect on your leadership. Did you exhibit leadership behavior from.
Percent interest compounded quarterly : Option A. A 3-year bank term deposit paying 7.67 percent interest compounded quarterly. (Round answers to 2 decimal places.)
Explain impact of the convergence of multiple technologies : Explain the impact of the convergence of multiple technologies through Moore's Law, the Hype Cycle and the 6 D's of Disruption.
Formulate an ethical application on the specific issue : Second, based on the ethical theory you defended in DB 2, formulate an ethical application on this specific issue in a 500-600 word thread. You are expected to.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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