Calculate the current price per share

Reference no: EM1346195

You have been given the following projections for Cali Corporation for the coming year.

Sales = 10,000 units
Sales price per unit = $12
Variable cost per unit = $6
Fixed costs = $10,000
Long-term debt = $15,000
Interest rate on long-term debt = 8%
Tax rate = 40%
Dividend payout ratio = 60%
Expected long-term growth rate = 8%
Shares of common stock outstanding = 10,000 shares
Beta = 1.4
Current rate on government T-Bonds = 3%
Expected return on the stock market = 8%

Calculate the current price per share for Cali Corporation.

Reference no: EM1346195

Questions Cloud

Find coefficient of kinetic friction between crate and floor : Suppose that you hear a clap of thunder 18.4 s after seeing the associated lightning stroke. The speed of sound waves in air is 343 m/s and the speed of light in air is 3.00 x10^8 m/s. How long are you from the lightning stroke.

Illustrate what is the average labor productivity : Illustrate what is the average labor productivity, in terms of square feet per painter-hour.

Expected return and risk : You have been scouring The Wall Street Journal looking for stocks that are good values & have discovered the given 5 candidates for addition to your portfolio:

How much energy is involved in the motion : Two people are holding up the ends of a 4.75-kg wooden board that is l = 2.00 m long. A m = 3.00-kg box sits on the board, 0.50 m from one end. What forces do the two people exert.

Calculate the current price per share : You have been given the following projections for Cali Corporation for the coming year.

Business ethics perspective : What are your thinking regarding if ethics can be taught? Can we teach people right from wrong from a business ethics perspective?

Communication management plan address : Explain what items should a communication management plan address and how can a stakeholder analysis assist in preparing and implementing parts of this plan?

Illustrate what is the macroeconomic relationship : Illustrate what is the macroeconomic relationship with the article, "Squaring the Economic Circle" by Art Buchwald.

What was the velocity of the cannon ball : The other end of the spring braced against a post that was firmly anchored to the ship's frame. What was the speed of the cannon ball if the spring compressed 50cm as the cannon was fired.

User Account

All Pages