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Dewey Corp. is expected to have an EBIT of $3,050,000 next year. Depreciation, the increase in...
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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 tax rate is 22 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.) |
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jeff jeffy answered 2 years agoRelated Solutions
Dewey Corp. is expected to have an EBIT of $3,250,000 next year. Depreciation, the increase in...
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Depreciation, the increase in net working capital, and capital
spending are expected to be $270,000, $175,000, and $275,000,
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four years. The company currently has $22,000,000 in debt and
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Dewey Corp. is expected to have an EBIT of $3,200,000 next year. Depreciation, the increase in...
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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. 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...
Question 2 Dewey Corp. is expected to have an EBIT of $2,700,000 next year. Depreciation, the...
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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
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Pearl Corp. is expected to have an EBIT of $3,400,000 next year. Depreciation, the increase in...
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spending are expected to be $160,000, $155,000, and $195,000,
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