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 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.)

Using the following information, prepare the Statement of Cash Flows for Corbett Enterprises for the year ended December 31, 2017 in the Answer sheet in this Excel spreadsheet. Place parentheses around those figures in the statement representing cash outlays. Then answer the 4 multiple choice questions in the Answer sheet in this Excel spreadsheet. Notice that the ? is beside Cash received from customers. You will need to prepare the Statement of Cash Flows with the other amounts and solve for Cash received from customers.

Cash paid to acquire marketable securities

$370,000

Proceeds from sale of marketable securities

17,500

Proceeds from issuance of capital stock

280,000

Proceeds from issuance of bonds payable

55,000

Payments to settle short-term debt

32,500

Interest and dividends received

10,000

Cash received from customers

?    

Dividends paid

130,000

Cash paid to suppliers and employees

1,030,000

Interest paid

25,000

Income taxes paid

70,000

Cash and cash equivalents, January 1, 2010

43,000

Cash and cash equivalents, December 31, 2010

58,000

Cash flows from operating activities:

      Cash provided by operating activities

$0

   Cash paid to suppliers and employees

     Cash disbursed for operating activities

                    -  

   Net cash flows ________ by operating activities:

$0

Cash flows from investing activities:

     Net cash _______ by investing activities

0

Cash flows from financing activities:

     Net cash ________ by financing activities

0

Net increase (decrease) in cash

$0

Cash and cash equivalents, beginning of year

Cash and cash equivalents, end of year

$0

Using the above information, indicate the best answer for each question in the space provided to the left of the question.

1

Corbett Enterprises' cash flow from investing activities during 2010 is:

a. $390,000 net cash used by investing activities.

b. $322,500 net cash provided by investing activities.

c. $352,500 net cash used by investing activities.

d. $360,000 net cash used by investing activities.

2

Corbett Enterprises' cash flow from financing activities during 2010 is:

a. $322,500 net cash provided by financing activities.

b. $172,500 net cash provided by financing activities.

c. $127,500 net cash provided by financing activities.

d. $375,000 net cash provided by financing activities.

3

Corbett Enterprises' cash flow from operating activities during 2010 is:

a. $45,000 net cash provided by operating activities.

b. $1,155,000 net cash used by operating activities.

c. $240,000 net cash provided by operating activities.

d. $195,000 net cash provided by operating activities.

4

In the 2010 statement of cash flows for Corbett Enterprises, the amount of cash received from customers is:

a. $1,310,000

b. $1,103,000

c. $1,233,000

d. $1,293,000