The following information pertains to Global Harmonic Control Systems (GHCS). Revenues, which are forecast to be...

The following information pertains to Global Harmonic Control Systems (GHCS). Revenues, which are forecast to be $500 million in one year, are expected to grow at 10 percent per year for the two years after that, 8 percent per year for the next two years, and 6 percent per year after that. Expenses including depreciation are 60 percent of revenues. Net investment, including net working capital and capital spending less depreciation, is 10 percent of revenues. Because all costs are proportional to revenues, net cash flow (sometimes referred to as free cash flow) grows at the same rate as do revenues. GHCS is an all-equity firm with 12 million shares outstanding. A discount rate of 16 percent is appropriate for a firm of GHCS’s risk. Assume tax rate as 40%.

Compute for the Price per share of Global Harmonic Control Systems (GHCS).

Expert Solution

jeff jeffy answered 2 years ago

The following information pertains to Wayde’s Fish Tanks and Theresa’s Critter Control at the end of...

The following information pertains to Wayde’s Fish Tanks and Theresa’s Critter Control at the end of 2016: ACCOUNT TITLE WAYDE’S FISH THERESA’S CRITTER TANKS CONTROL Current Assets $ 45,000 $ 45,000 Total Assets 800,000 800,000 Current Liabilities 78,000 57,000 Total Liabilities 675,000 500,000 Stockholders’ Equity 125,000 300,000 Interest Expense 62,000 45,000 Income Tax Expense 69,000 75,500 Net Income 105,000 115,000 Compute each company’s debt to asset ratio, current ratio and times interest earned (EBIT must be computed…Earnings Before Interest...

Explain the use of e-commerce and global information systems.

Describe how global companies can utilize the various types of control systems.

The following exercise pertains to the Control Quality process. a. What does Control Quality monitor and...

The following exercise pertains to the Control Quality process. a. What does Control Quality monitor and what does it compare the results to? b. Describe inspection. c. How do inspection and prevention differ? d. What is attribute conformity? What is the resulting decision from attribute measurement results? e. Describe the purpose of control charts. What are they used for primarily? f. What are the common causes of variance?

Explain the types of organizational structures used with global information systems

select one (1) organization that successfully went global and adopted global information systems. Then, explain the...

select one (1) organization that successfully went global and adopted global information systems. Then, explain the overall manner in which the organization in question has benefited from its globalization. Include at least two (2) examples of such benefits to support your response.

A) Required information [The following information applies to the questions displayed below.] The following information pertains...

A) Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Beginning Inventory 400 units @ $ 30 Apr. 1 Purchased 2,000 units @ $ 35 Oct. 1 Purchased 600 units @ $ 38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change...

Modern technologies, such as global positioning systems and geographic information systems, have allowed some farmers to...

Modern technologies, such as global positioning systems and geographic information systems, have allowed some farmers to become more efficient through more appropriate use of fertilizers based on the varying amounts needed in soils at various locations on a farm. What is the name of such a farming system? Explain to your farmer friend why a corn monocrop is not healthy for her land. List at least three benefits of crop rotation. . Why do you think Texas, Minnesota, and Iowa...

Compare and contrast an information systems development project in a global setting to one in a...

Compare and contrast an information systems development project in a global setting to one in a single country. What unique challenges must be overcome when using information technology to support global operations of a business? 200 Words please.

what are 3-5 topics regarding global efforts in the information systems industry. clearly identify the global...

what are 3-5 topics regarding global efforts in the information systems industry. clearly identify the global topics, how it's being used in global firms and what affect the topic has on the information systems industry

Question