Question
In: Finance
Pearl Corp. is expected to have an EBIT of $3,400,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $3,400,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $155,000, and $195,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $17,500,000 in debt and 1,350,000 shares outstanding. At Year 5, you believe that the company's sales will be $27,030,000 and the appropriate price-sales ratio is 2.6. 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 2 years agoRelated Solutions
Pearl Corp. is expected to have an EBIT of $3,400,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $3,400,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $160,000, $155,000, and $195,000,
respectively. All are expected to grow at 18 percent per year for
four years. The company currently has $17,500,000 in debt and
1,350,000 shares outstanding. At Year 5, you believe that the
company's sales will be $27,030,000 and the appropriate price-sales
ratio is 2.6. The company’s WACC is 9.1 percent...
Pearl Corp. is expected to have an EBIT of $2,300,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $2,300,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $160,000, $100,000, and $140,000,
respectively. All are expected to grow at 19 percent per year for
four years. The company currently has $12,000,000 in debt and
1,000,000 shares outstanding. After Year 5, the adjusted cash flow
from assets is expected to grow at 3 percent indefinitely. The
company’s WACC is 8.8 percent and the...
Pearl Corp. is expected to have an EBIT of $2,500,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $2,500,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $160,000, $110,000, and $150,000,
respectively. All are expected to grow at 15 percent per year for
four years. The company currently has $13,000,000 in debt and
850,000 shares outstanding. At Year 5, you believe that the
company's sales will be $17,930,000 and the appropriate price-sales
ratio is 2.7. The company’s WACC is 9.1 percent...
Pearl Corp. is expected to have an EBIT of $3,000,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $3,000,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $160,000, $135,000, and $175,000,
respectively. All are expected to grow at 20 percent per year for
four years. The company currently has $15,500,000 in debt and
1,350,000 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 8.6 percent and the...
Pearl Corp. is expected to have an EBIT of $3,200,000 next year. Depreciation, the increase in...
Pearl 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 $160,000, $145,000, and $185,000,
respectively. All are expected to grow at 16 percent per year for
four years. The company currently has $16,500,000 in debt and
1,150,000 shares outstanding. After Year 5, the adjusted cash flow
from assets is expected to grow at 3 percent indefinitely. The
company’s WACC is 8.8 percent and the...
Pearl Corp. is expected to have an EBIT of $2,600,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $2,600,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $160,000, $115,000, and $155,000,
respectively. All are expected to grow at 16 percent per year for
four years. The company currently has $13,500,000 in debt and
1,150,000 shares outstanding. After Year 5, the adjusted cash flow
from assets is expected to grow at 3 percent indefinitely. The
company’s WACC is 9.2 percent and the...
Pearl Corp. is expected to have an EBIT of $2,400,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $2,400,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $160,000, $105,000, and $145,000,
respectively. All are expected to grow at 20 percent per year for
four years. The company currently has $12,500,000 in debt and
1,050,000 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 8.9 percent and the...
Pearl Corp. is expected to have an EBIT of $3,500,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $3,500,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $160,000, $160,000, and $200,000,
respectively. All are expected to grow at 19 percent per year for
four years. The company currently has $18,000,000 in debt and
1,600,000 shares outstanding. After Year 5, the adjusted cash flow
from assets is expected to grow at 3 percent indefinitely. The
company’s WACC is 9.2 percent and the...
Pearl Corp. is expected to have an EBIT of $3,300,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $3,300,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $160,000, $150,000, and $190,000,
respectively. All are expected to grow at 17 percent per year for
four years. The company currently has $17,000,000 in debt and
1,500,000 shares outstanding. At Year 5, you believe that the
company's sales will be $25,350,000 and the appropriate price-sales
ratio is 2.5. The company’s WACC is 8.9 percent...
Pearl Corp. is expected to have an EBIT of $3,300,000 next year. Depreciation, the increase in...
Pearl Corp. is expected to have an EBIT of $3,300,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $160,000, $150,000, and $190,000,
respectively. All are expected to grow at 17 percent per year for
four years. The company currently has $17,000,000 in debt and
1,500,000 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 8.9 percent and the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Which subnet (network address) does host 25.17.102.51 255.255.248.0 belong to?
- Joe Dokes retired today with $1,000,000 in his retirement nest egg. If he followed a cash...
- how is biopsychosocial compatiable model in the future.
- Give at least 5 nursing interventions (with rationale) of nursing diagnosis: Health-seeking behaviors related to patient’s...
- The Wall Street Wizard Co. sold a stock market investing plan through the mail that made...
- Rotating bits in C This rotates bits to the left which means the bits that were...
- Implement a method that meets the following requirements: (a) Takes as parameter 1) an int array...
ADVERTISEMENT