What is the price per share of company stock

Assignment Help Financial Management

Reference no: EM131348098

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. At Year 5, you believe that the company's sales will be $17,000,000 and the appropriate price−sales ratio is 2.2. 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131348098

Questions Cloud

Pricing exotic options-particular european call option : Pricing Exotic Options. A given stock is currently priced at $100. Historically, its annual return has been 12 percent with a standard deviation of 15 percent. Build a spreadsheet simulation model for the stock price, using the option pricing model d..

How do you plan to practice methods of self-reflection : Self-reflection is a necessary tool to improve the way you function as a leader. How do you plan to practice methods of self-reflection that contribute to the development of how you lead?

Predict the rate of inflation : If workers accurately predict the rate of inflation, is there a short-run trade-off between inflation and unemployment, as predicted by the Phillips curve? Why or why not?

Anchor for nearly every traded currency : Historically the gold standard was the anchor for nearly every traded currency. Explain how the gold standard worked as nations traded domestically and internationally at fixed exchange rates.

What is the price per share of company stock : 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..

Capital controls and intermediate regimes : Some remedies and preventive measures have been put forth to slow or forestall currency crises, such as capital controls and intermediate regimes (i.e., fixed or floating exchange rates). Discuss these measures and comment on whether they would be..

Constitutes illegal sexual harassment : In Scenario B, you attend the office Christmas party. At the party, the company's CEO tells you that he finds you very attractive. Which if either of these scenarios constitutes illegal sexual harassment?

Current yield to maturity : Calculate the current price of a $1,000 par value bond that has a coupon rate of 17 percent, pays coupon interest semi-annually, has 18 years remaining to maturity, and has a current yield to maturity (discount rate) of 5 percent.

Supervisor harassment causes economic harm : The employer is automatically liable if a supervisor's harassment causes economic harm to an employee, even if the employer was never previously informed about the harassment.

User Account

All Pages