What is cwi current price per share

Assignment Help Finance Basics
Reference no: EM132747274

Cool-Waves Inc. (CWI) is a newly incorporated firm that produces trendy and innovative clothing for young adults. The company is exhibiting rapid growth. It has current free cash flows of $25 million which are expected to increase at the rate of 18% for the next 5 years. However, after this period of high growth, as the novelty of its products wears off, the growth rate of CWI free cash flows will decline by 2% per year for the next 4 years and thereafter remain constant for the foreseeable future. CWI has a weighted average cost of capital of 14%. The company currently has $15 million of debt selling at 10% below par, and 200 million outstanding shares. It also has $ 120 million in cash. What is CWI's current price per share? (Hint:Take period 4 as the new time 0 for the second timeline and period 9 as the new time 0 for the third timeline.)

Reference no: EM132747274

Questions Cloud

Predict the one year interest rate : Predict the one year interest rate three years from todat if interest rate are 3.5%,4.0%,4.5%,and 5% for bonds with one to four years to maturity
How would efforts in support of diversity : Do you think most CEOs understand and support the need for HR to have a seat at the table to discuss business strategy? Why or why not?
What is the face value of bond : The bond has monthly coupon payments of $12 and is currently selling at $3,617. 062 What is the face value of this bond?
What is human sexual behavior : When do we usually observe the changes of listed above of males and females? How does the society shape the sexual behavior of an individual?
What is cwi current price per share : Cool-Waves Inc. (CWI) is a newly incorporated firm that produces trendy and innovative clothing for young adults. The company is exhibiting rapid growth.
Describe key element of process : Job Analysis is considered to be boring by many. Explain why this is the case. Nonetheless, discuss why it is very important and describe key element of process
Prepare the partnerships statement of changes in equity : Jamie and Kristine each contributed P5000 during the year. Prepare the Partnerships Statement of Changes in Equity
Enterprise risk management : Discuss at least five key drivers of ERM efficiency that are or should be present in your selected organization.
What is amount the employer should record as payroll taxes : What is the amount the employer should record as payroll taxes expense for the employee for the month of January

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