What is the price per share of the company stock

Assignment Help Financial Management

Reference no: EM131450564

You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,130,000 this year. Depreciation, the increase in net working capital, and capital spending were $239,000, $104,000, and $485,000, respectively. You expect that over the next five years, EBIT will grow at 20 percent per year, depreciation and capital spending will grow at 25 per year, and NWC will grow at 15 per year. The company currently has $17,900,000 in debt and 515,000 shares outstanding. At Year 5, you believe sales will be $21,350,000 and the price−sales ratio will be 2.8. The company’s WACC is 8.7 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: EM131450564

Questions Cloud

Define valuable long-term sustainability for the firm : Now that you have an understanding of corporate culture and the variables that impact it, how would you characterize an ethically effective culture.

Credibility risk premium to the required return : She decides to add an extra 1% “credibility” risk premium to the required return as part of her valuation analysis.

What is your central belief about the individual person : What is your central belief about the individual person?How does your personal worldview influence your approach to patients?

Who do not share the corporate culture : One element that surely impacts a firm's culture is its employee population. While a corporate culture can shape an employee's attitudes and habits.

What is the price per share of the company stock : The company’s WACC is 8.7 percent and the tax rate is 35 percent. What is the price per share of the company's stock?

Anticipated level of profits at the expected sales volume : what is the anticipated level of profits at the expected sales volume? Assuming the product mix is 40% chicken and 60% steak at the break-even point.

Define the process of theory building : Define the process of theory building. Discuss the differences in approach based on inductive versus deductive reasoning.

Describe the global apparel business : Assume you have a number of suppliers for your global apparel business. You have in place a code of conduct both for your workplace and for your suppliers.

Describe the application to an area of nursing practice : What are the key concepts and components of the example you selected, and how are they defined? Create an example describing the application.

User Account

All Pages