What is price per share of the company stock

Assignment Help Financial Management

Reference no: EM131889801

Ward Corp. is expected to have an EBIT of $2,450,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $176,000, $107,000, and $126,000, respectively. All are expected to grow at 19 percent per year for four years. The company currently has $18,500,000 in debt and 810,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 9.1 percent and the tax rate is 35 percent.

WHAT IS THE PRICE PER SHARE OF THE COMPANY'S STOCK?

Reference no: EM131889801

Questions Cloud

What is green paddle unlevered cost of capital : The Green Paddle has a cost of equity of 17.1 percent and a pre-tax cost of debt of 4.3 percent. What is Green Paddle's unlevered cost of capital?

What is the investor rate of return : The stock pays $0.63 per share dividend each year. If the stock is sold at the end of the year at $23 per share, what is the investor's rate of return?

What is the optimum economic service life : What is the optimum economic service life that can be used in a replacement analysis based on a 15% per year MARR?

Considering developing new computer software : Techno Corp. management is considering developing new computer software. what is the net present value of this project?

What is price per share of the company stock : WHAT IS THE PRICE PER SHARE OF THE COMPANY'S STOCK?

Define internal rate of return and modified internal rate : Define internal rate of return (IRR) and modified internal rate of return (MIRR), accompanied by equations for clarity and preciseness.

What is the npv of the new product and annual cash flows : What is the NPV of the new product? what level of expected cash flows does it make sense to abandon the project?

How sensitive is ocf to changes in quantity sold : How sensitive is OCF to changes in quantity sold?

Contract to build and launch satellite : Lockheed Martin won a contract to build and launch a satellite for Vietnam Posts and Telecommunications Group at the cost of $300 million.

User Account

All Pages