What is the price per share of the companys stock

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Ward Corp. is expected to have an EBIT of $2,200,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $171,000, $97,000, and $121,000, respectively. All are expected to grow at 20 percent per year for four years. The company currently has $16,000,000 in debt and 810,000 shares outstanding. At Year 5, you believe that the company's sales will be $16,500,000 and the appropriate price−sales ratio is 2.6. The company’s WACC is 8.6 percent and the tax rate is 40 percent. What is the price per share of the company's stock?

Reference no: EM131183555

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