Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2018 Revenue $5,000 Cost of goods sold 1,800 Depreciation 590 Inventories 290 Administrative expenses 540 Interest expense 280 Federal and state taxes* 560 Accounts payable

image text in transcribed

2018 Revenue $5,000 Cost of goods sold 1,800 Depreciation 590 Inventories 290 Administrative expenses 540 Interest expense 280 Federal and state taxes* 560 Accounts payable 280 Accounts receivable 450 Net fixed assets 5,700 Long-term debt 1,500 Notes payable 990 Dividends paid 360 Cash and marketable securities 850 2019 $5,100 1,900 610 340 590 280 580 350 500 6,350 1,890 560 360 340 * Taxes are paid in their entirety in the year that the tax obligation is incurred. T Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2019 is $6,640 and that the value of its long-term debt is only $1,690. In addition, the consensus among investors is that Fincorp's past investments in developing the skills of its employees are worth $3,000. This investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock? (Assume 592,000 shares of stock outstanding.) (Round your answer to 2 decimal places.) Price per share 2018 Revenue $5,000 Cost of goods sold 1,800 Depreciation 590 Inventories 290 Administrative expenses 540 Interest expense 280 Federal and state taxes* 560 Accounts payable 280 Accounts receivable 450 Net fixed assets 5,700 Long-term debt 1,500 Notes payable 990 Dividends paid 360 Cash and marketable securities 850 2019 $5,100 1,900 610 340 590 280 580 350 500 6,350 1,890 560 360 340 * Taxes are paid in their entirety in the year that the tax obligation is incurred. T Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2019 is $6,640 and that the value of its long-term debt is only $1,690. In addition, the consensus among investors is that Fincorp's past investments in developing the skills of its employees are worth $3,000. This investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock? (Assume 592,000 shares of stock outstanding.) (Round your answer to 2 decimal places.) Price per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forecasting Principles And Practice

Authors: Rob J Hyndman, George Athanasopoulos

3rd Edition

0987507133, 978-0987507136

More Books

Students also viewed these Finance questions

Question

What is a Du Pont chart? How can it help in managing performance?

Answered: 1 week ago

Question

4.6 Summarize job design concepts.

Answered: 1 week ago

Question

4.5 Explain what competencies and competency modeling are.

Answered: 1 week ago