Question
In: Finance
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 tax rate is 24 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.) |
Please show formulas for excel. Thanks!
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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...
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 $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 $3,400,000 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 $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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
- There are a large number of tasks involved in information technology and programming, and many of...
ADVERTISEMENT