In: Finance
Ward Corp. is expected to have an EBIT of $2,050,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $168,000, $91,000, and $118,000,
respectively. All are expected to grow at 17 percent per year for
four years. The company currently has $14,500,000 in debt and
830,000 shares outstanding. At Year 5, you believe that the
company's sales will be $16,200,000 and the appropriate price–sales
ratio is 2.3. The company’s WACC is 8.3 percent and the tax rate is
35 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.)
That's the only information provided.
Share price
$