Question
In: Finance
Dewey Corp. is expected to have an EBIT of $2.45 million next year. Depreciation, the increase...
Dewey Corp. is expected to have an EBIT of $2.45 million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $180,000, $85,000, and $185,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $13 million in debt and 800,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.5 percent indefinitely. The company’s WACC is 9.1 percent and the tax rate is 21 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.)
Solutions
jeff jeffy answered 1 month agoRelated Solutions
Dewey Corp. is expected to have an EBIT of $2.45 million next year. Depreciation, the increase...
Dewey Corp. is expected to have an EBIT of $2.45 million next
year. Depreciation, the increase in net working capital, and
capital spending are expected to be $180,000, $85,000, and
$185,000, respectively. All are expected to grow at 18 percent per
year for four years. The company currently has $13 million in debt
and 800,000 shares outstanding. After Year 5, the adjusted cash
flow from assets is expected to grow at 2.5 percent indefinitely.
The company’s WACC is 9.1 percent...
Dewey Corp. is expected to have an EBIT of $2.45 million next year. Depreciation, the increase...
Dewey Corp. is expected to have an EBIT of $2.45 million next
year. Depreciation, the increase in net working capital, and
capital spending are expected to be $180,000, $85,000, and
$185,000, respectively. All are expected to grow at 18 percent per
year for four years. The company currently has $13 million in debt
and 800,000 shares outstanding. The company’s WACC is 9.1 percent
and the tax rate is 21 percent. You decide to calculate the
terminal value of the company...
Dewey Corp. is expected to have an EBIT of $3,250,000 next year. Depreciation, the increase in...
Dewey Corp. is expected to have an EBIT of $3,250,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $260,000, $165,000, and $265,000,
respectively. All are expected to grow at 18 percent per year for
four years. The company currently has $21,000,000 in debt and
875,000 shares outstanding. At Year 5, you believe that the
company's sales will be $29,000,000 and the appropriate price-sales
ratio is 2.5. The company’s WACC is 8.8 percent...
Dewey Corp. is expected to have an EBIT of $3,050,000 next year. Depreciation, the increase in...
Dewey Corp. is expected to have an EBIT of $3,050,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $240,000, $145,000, and $245,000,
respectively. All are expected to grow at 20 percent per year for
four years. The company currently has $19,000,000 in debt and
855,000 shares outstanding. After Year 5, the adjusted cash flow
from assets is expected to grow at 3.3 percent indefinitely. The
company’s WACC is 9.6 percent and the...
Dewey Corp. is expected to have an EBIT of $3,350,000 next year. Depreciation, the increase in...
Dewey Corp. is expected to have an EBIT of $3,350,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $270,000, $175,000, and $275,000,
respectively. All are expected to grow at 20 percent per year for
four years. The company currently has $22,000,000 in debt and
885,000 shares outstanding. After Year 5, the adjusted cash flow
from assets is expected to grow at 2.7 percent indefinitely. The
company’s WACC is 9.1 percent and the...
Dewey Corp. is expected to have an EBIT of $3,200,000 next year. Depreciation, the increase in...
Dewey Corp. is expected to have an EBIT of $3,200,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $255,000, $160,000, and $260,000,
respectively. All are expected to grow at 17 percent per year for
four years. The company currently has $20,500,000 in debt and
870,000 shares outstanding. After Year 5, the adjusted cash flow
from assets is expected to grow at 2.4 percent indefinitely. The
company’s WACC is 8.7 percent and the...
Question 2 Dewey Corp. is expected to have an EBIT of $2,700,000 next year. Depreciation, the...
Question 2 Dewey Corp. is expected to have an EBIT of $2,700,000
next year. Depreciation, the increase in net working capital, and
capital spending are expected to be $205,000, $110,000, and
$210,000, respectively. All are expected to grow at 19 percent per
year for four years. The company currently has $15,500,000 in debt
and 820,000 shares outstanding. At Year 5, you believe that the
company's sales will be $27,900,000 and the appropriate price-sales
ratio is 2.6. The company’s WACC is...
Ward Corp. is expected to have an EBIT of $1.9 million next year. Depreciation, the increase...
Ward Corp. is expected to have an EBIT of $1.9 million
next year. Depreciation, the increase in net working capital, and
capital spending are expected to be $165,000, $85,000, and
$115,000, respectively. All are expected to grow at 18 percent per
year for four years. The company currently has $13 million in debt
and 800,000 shares outstanding. After Year 5, the adjusted cash
flow from assets is expected to grow at 3 percent indefinitely. The
company’s WACC is 8.5 percent...
Ward Corp. is expected to have an EBIT of $1.9 million next year. Depreciation, the increase...
Ward Corp. is expected to have an EBIT of $1.9 million next
year. Depreciation, the increase in net working capital, and
capital spending are expected to be $165,000, $85,000, and
$115,000, respectively. All are expected to grow at 18 percent per
year for four years. The company currently has $13,000,000 in debt
and 800,000 shares outstanding. At Year 5,th adjusted cash flow
from assets is expected to grow at 3% indefinitely. The company’s
WACC is 8.5 percent and the tax...
Ward Corp. is expected to have an EBIT of $2,750,000 next year. Depreciation, the increase in...
Ward Corp. is expected to have an EBIT of $2,750,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $182,000, $119,000, and $132,000,
respectively. All are expected to grow at 19 percent per year for
four years. The company currently has $21,500,000 in debt and
820,000 shares outstanding. At Year 5, you believe that the
company's sales will be $17,600,000 and the appropriate price–sales
ratio is 2.8. The company’s WACC is 9.3 percent...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Write a C++ program that will make changes in the list of strings by modifying its...
- You own a 10-year, $1,000 par value bond paying 8 percent interest annually. The market price...
- The manager of Walmart’s in Arkansas is considering the possibility of providing flower delivery service. She...
- As mentioned at the beginning of the Chapter 2 (Santerre and Neun), the life expectancy rate...
- Discuss database constraints: Primary key, check, and referential integrity constraints? Give an example for each. What...
- Can this code be rewritten but keeping the same functions as the original and with detailed...
- Comparing Investment Criteria Consider the following cash flows of two mutually exclusive projects for A-Z Motorcars....
ADVERTISEMENT