The firms product market is considered stable

Assignment Help Financial Management

Reference no: EM131189346

Julie Smith, an analyst with ABC Company, has collected the following data about the firm:

EBITDA = $3.5 million

Tax rate = 35%

Debt outstanding = $3 million

Cost of debt = 10.5%

Cost of common equity = 14%

Shares of stock outstanding = 900,000

BV of the stock per share = $13

The firm’s product market is considered stable, and the firm expects no growth, and all earnings are paid out as dividends.

Calculate the firm’s earning per share, assuming depreciation & amortization costs of $800,000 per year. Show your calculations.

Reference no: EM131189346

Questions Cloud

Calculate values of iit for each country : Suppose that the following information represents the complete trade data for each country.- Use these data and Equation to calculate values of IIT for each country.

What is the standard deviation for the listedobesity rates : What is the best estimate of the average obesity percentage for these countries? What is the standard deviation for the listedobesity rates?

Analyze the issue using the critical-thinking method : Identify two news articles on your topic located using the South University Online Library. Make sure that the articles you choose present at least two different perspectives on the issue or event you choose and include information that you can us..

Determine the magnitude of the velocity : Determine the magnitude of the velocity and acceleration of the car when it reaches point B. Also, how much time is required for it to travel from A to B?

The firms product market is considered stable : Julie Smith, an analyst with ABC Company, has collected the following data about the firm: The firm’s product market is considered stable, and the firm expects no growth, and all earnings are paid out as dividends. Calculate the firm’s earning per sh..

Discuss the logistical implications : Discuss the logistical implications associated with the increased emphasis on the convenience associated with a family's shopping experience.

How many calories did she take in from snacks : How many calories did she take in from snacks?

Maximum price the investor should pay for the stock today : An investor plans to buy a common stock and hold it for two years. The investor expects to receive $1.5 in dividend a year and $26 from the sales of the stock at the end of year 2. If the investor wants a 15% return (compound annually), the maximum p..

Compute the number of words : Rewrite your C++ program in Project 1 to compute the number of words, average length and lengths of the words in the text file words.txt - the input file

User Account

All Pages