What is the price per share of the companys stock

Assignment Help Financial Management

Reference no: EM131971877

You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,190,000 this year. Depreciation, the increase in net working capital, and capital spending were $242,000, $107,000, and $500,000, respectively.

You expect that over the next five years, EBIT will grow at 16 percent per year, depreciation and capital spending will grow at 21 per year, and NWC will grow at 11 per year. The company currently has $18,500,000 in debt and 385,000 shares outstanding.

After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company's WACC is 9.1 percent and the tax rate is 40 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: EM131971877

Questions Cloud

What is the change in the average selling price for desktops : What is the total revenue for dell? what is the change in the average selling price for desktops pcs? why do you think this occurred?

How much is the investment product worth to you today : If the appropriate discount rate to evaluate the product is 4%, how much is the investment product worth to you today?

Value of implementing total quality management standard : Value of implementing Total Quality Management standard to increase the firm performance - Critically evaluate and analyse theories and concepts

Compared to citizens of other countries : United States has a large deficit with many of its trading partners; yet, the deficit will continue to exist or may even grow larger in foreseeable future.

What is the price per share of the companys stock : You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,190,000 this year.

Calculate the after-tax present worth of the asset : Research and development equipment is being purchased for asphalt testing. It will result in profits of $60,000 per year. The equipment will cost $140,000.

Important issues for policy makers : Poverty and inequality continue to be important issues for our policy makers. Discuss some measures our government may take to reduce poverty and inequality.

What is the value of the option to abandon : What is the value of the option to abandon? (Do not round intermediate calculations and round your answer to 2 decimal places. e.g., 32.16.)

Absolute advantage and comparative advantage : Under what conditions is the production possibilities frontier is linear rather than bowed out?

User Account

All Pages