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Derry Corporation is expected to have an EBIT of $3,050,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to

image text in transcribed Derry Corporation is expected to have an EBIT of $3,050,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $240,000, $145,000, and $245,000, respectively. All are expected to grow at 20 percent per year for four years. The company currently has $19,000,000 in debt and 855,000 shares outstanding. At Year 5, you believe that the company's sales will be $28,600,000 and the appropriate price-sales ratio is 3.3. The company's WACC is 9.6 percent and the tax rate is 22 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. Answer is complete but not entirely correct. Share price 48.20

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