Question

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 and the tax rate is 21 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.)
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
URGENT!!! 30 MINUTES LEFT!!! Pearl Corp. is expected to have an EBIT of $2,400,000 next year....
URGENT!!! 30 MINUTES LEFT!!! 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. At Year 5, you believe that the company's sales will be $20,400,000 and the appropriate price-sales ratio is 2.6. The company’s...
Ward Corp. is expected to have an EBIT of $2,200,000 next year. Depreciation, the increase in...
Ward Corp. is expected to have an EBIT of $2,200,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $171,000, $97,000, and $121,000, respectively. All are expected to grow at 20 percent per year for four years. The company currently has $16,000,000 in debt and 810,000 shares outstanding. At Year 5, you believe that the company's sales will be $16,500,000 and the appropriate price?sales ratio is 2.6. The company’s WACC is 8.6 percent...
Ward Corp. is expected to have an EBIT of $2,350,000 next year. Depreciation, the increase in...
Ward Corp. is expected to have an EBIT of $2,350,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $174,000, $103,000, and $124,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $17,500,000 in debt and 840,000 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...
Ward Corp. is expected to have an EBIT of $2,100,000 next year. Depreciation, the increase in...
Ward Corp. is expected to have an EBIT of $2,100,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $169,000, $93,000, and $119,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $15,000,000 in debt and 840,000 shares outstanding. At Year 5, you believe that the company's sales will be $16,300,000 and the appropriate price–sales ratio is 2.4. The company’s WACC is 8.4 percent...
Ward Corp. is expected to have an EBIT of $2,200,000 next year. Depreciation, the increase in...
Ward Corp. is expected to have an EBIT of $2,200,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $171,000, $97,000, and $121,000, respectively. All are expected to grow at 20 percent per year for four years. The company currently has $16,000,000 in debt and 810,000 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...
River Walk Tours is expected to have an EBIT of $184,000 next year. Depreciation, the increase...
River Walk Tours is expected to have an EBIT of $184,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $11,000, $1,500, and $13,000, respectively. All are expected to grow at 6 percent per year for three years. After Year 4, the adjusted cash flow from assets is expected to grow at 2.5 percent indefinitely. The company's WACC is 9.2 percent and the tax rate is 21 percent. What is the terminal value...
Franktown Motors is expected to have an EBIT of $2,200 next year. Depreciation, the increase in...
Franktown Motors is expected to have an EBIT of $2,200 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $158, $92, and $114, respectively. This yields a year 1 Free Cash Flow of $1,404. All items are expected to grow at 15 percent per year until the end of year 4. The firm currently has $12,098 in debt and 538 shares outstanding. After year 4, the adjusted cash flow from assets is expected...
URGENT!! 30 MINUTES LEFT!! You have looked at the current financial statements for Reigle Homes, Co....
URGENT!! 30 MINUTES LEFT!! You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,090,000 this year. Depreciation, the increase in net working capital, and capital spending were $237,000, $102,000, and $475,000, respectively. You expect that over the next five years, EBIT will grow at 18 percent per year, depreciation and capital spending will grow at 23 percent per year, and NWC will grow at 13 percent per year. The company has...
You have looked at the current financial statements for Reigle Homes, Co. The company has an...
You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,010,000 this year. Depreciation, the increase in net working capital, and capital spending were $233,000, $98,000, and $455,000, respectively. You expect that over the next five years, EBIT will grow at 17 percent per year, depreciation and capital spending will grow at 22 percent per year, and NWC will grow at 12 percent per year. The company has $16,700,000 in debt and...
You have looked at the current financial statements for Reigle Homes, Co. The company has an...
You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,010,000 this year. Depreciation, the increase in net working capital, and capital spending were $233,000, $98,000, and $455,000, respectively. You expect that over the next five years, EBIT will grow at 17 percent per year, depreciation and capital spending will grow at 22 percent per year, and NWC will grow at 12 percent per year. The company has $16,700,000 in debt and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT