What is the price per share of the company stock

Assignment Help Financial Management

Reference no: EM132018925

Ward Corp. is expected to have an EBIT of $2,200,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $171,000, $97,000, and $121,000, respectively. All are expected to grow at 20 percent per year for four years. The company currently has $16,000,000 in debt and 810,000 shares outstanding. At Year 5, you believe that the company's sales will be $16,500,000 and the appropriate price?sales ratio is 2.6. The company’s WACC is 8.6 percent and the tax rate is 40 percent. What is the price per share of the company's stock?

Reference no: EM132018925

Questions Cloud

An investor uses this simple risk model : An investor uses this simple risk model. she measures risk-free risk and industry risk in r and she accepts the market view for this r.

Invest in each investment in order to maximize its return : How much should it invest in each investment in order to maximize its return?

A new client comes into investment office : A new client comes into an investment office. She is looking to invest money into an IRA. how much should she begin paying each month?

Profile for alternative using an opportunity cost approach : Clearly show the cash flow profile for each alternative using an opportunity cost approach (outsider’s viewpoint approach).

What is the price per share of the company stock : The company’s WACC is 8.6 percent and the tax rate is 40 percent. What is the price per share of the company's stock?

Detailed discussion of facebook indicators : A detailed discussion of FACEBOOK indicators (example: Price, Beta, PE, EPS, ETC)

Larger financial picture of the institution : Why is it important to understand the larger financial picture of the institution and not just your own unit's financial picture? (higher education)

About introducing new surface cleaning machine : Applied Nanotech is thinking about introducing a new surface cleaning machine. What is the base-case NPV?

What is the adjusted present value of the project : All principal will be repaid in one balloon payment at the end of the sixth year. What is the adjusted present value (APV) of the project?

User Account

All Pages