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Derry Corporation is expected to have an EBIT of $2.1 million next year. Depreciation, the increase in net working capital, and capital spending are expected
Derry Corporation is expected to have an EBIT of $2.1 million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $165,000,$80,000, and $120,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $10.4 million in debt and 750,000 shares outstanding. After Year 5 , the adjusted cash flow from assets is expected to grow at 3 percent, indefinitely. The company's WACC is 8.5 percent and the tax rate is 21 percent. What is the price per share of the company's stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16
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