Calculate the current price per share (P0) for Olson Corporation, given the following information. The data all pertain to the year just ended.
Sales = 100,000 units
Sales price per unit = $100.00
Variable cost per unit = $70.00
Fixed cost = $100,000
Debt outstanding = $500,000
Interest rate on debt = 10 percent
Tax Rate = 40 percent
Common stock shares
outstanding = 100,000 shares
Beta = 1.2
kRF = 2 percent
kM = 8 percent
Pay-out ratio = 30 percent
Growth rate in earnings
and dividends = 4 percent
$ 68.40 |
||
$342.00 |
||
$102.60 |
||
$ 98.65 |
||
$133.38 |
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